A few weeks after the disastrous Terra LUNA fall, the prosecution stated that a full-scale inquiry into the tragedy had begun. Employees who had previously been involved in development work were probed over the weekend.
The Seoul Southern District Prosecutors' Office's crime investigation team called all Terraform Labs employees. According to several employees, "even at the time, there was a warning inside that there could be a collapse at any time, but CEO Do Kwon forced the coin to be launched."
Another employee was quoted as saying, "If you pay interest of several tens of percent to investors without a stable collateral or profit model, people may flock to you at the beginning," but "at a certain point in time, it has no choice but to collapse because it cannot handle interest payments and fluctuations in value."
Another virtual currency, Basis Cash, was offered as an example because it had the same structure as Terra LUNA and suffered the same destiny.
This prompted investigators to focus on whether Terraform Labs leaders, including the CEO, were aware of and ignored Terra LUNA's problems from the outset.
Prosecutors will also investigate whether there was intentional price manipulation and whether the domestic virtual currency exchange followed the necessary listing review process.
The number of people who have filed complaints against Terraform Labs has now reached 76. The amount of losses suffered as a result of the Terra LUNA catastrophe has risen to 6.7 billion won.