The recent collapse of algorithmic stablecoin TerraLuna had shattered the crypto market. In response to this collapse, the Seoul Metropolitan Police Agency has launched an inquiry against a Terraform Team. The complaint says that Terraform Labs employees have apparently stolen the corporate funds of Bitcoin, LUNA, and Terra,Reported by the Korean news.
The korean report records one of the recent activity related to this enquiry that the an employee of Terraform labs was suspected of stealing corporate funds, thus, they were requested to frozen the funds through virtual currency to proceed with further investigation
An impulsive Down fall off LUNA 2.0
The Collapse of Terra UST an algorithmic stablecoin’s drastic downfall has affected the original LUNA losing its value completely after the dramatic fall. Which resulted in the loss of billions of dollars. Binance’s CEO, Changpeng Zhao provides information about the loss of almost $1.6 billion on its LUNA investment.
Bearing these market conditions Terra team has launched a new blockchain called LUNA 2.0, Terra 2.0 went live on May 28 according to Terra co-founder Do Kwon’s Terra arrival plan. And greatly accepted by the community despite the collapse. which eventually started falling short of expectations just after a week’s performance.
As doubted by many, Terra 2.0 started its downfall by losing nearly 70% of its value just within a day. According to CoinMarketCap data the LUNA was initially trading at $4.29, and went down by 15.55% in just 24 hours shattering the stablecoin market.