SUBMIT PRESS RELEASE
  • Facebook
  • Twitter
  • LinkedIn
  • RSS
Coinfomania
  • News
    • Crypto
    • DeFi
    • NFTs
    • Regulation
    • Press Release
  • Beginner Guides
    • Bitcoin
    • Ethereum
    • Solana
    • NFTs
  • Price Analysis
  • Interviews
  • Crypto Swaps 🔥
  • Crypto Merch
  • About Us
  • News
    • Crypto
    • DeFi
    • NFTs
    • Regulation
    • Press Release
  • Beginner Guides
    • Bitcoin
    • Ethereum
    • Solana
    • NFTs
  • Price Analysis
  • Interviews
  • Crypto Swaps 🔥
  • Crypto Merch
  • About Us
South Korea Cracks Down on Terra Employees Involved in $100M LUNA Fraud
Chimamanda Marcel November 9, 2022 3:38 PM

South Korean authorities have discovered that Terraform Lab, the Do Kwon-led software development company, sold some tokens associated with LUNA Classic (LUNC) to its employees at half price before the assets were released to the market. 

According to local media from across the country, the digital assets, which include Mirror Tokens and Anchor Tokens, were sold to staff who worked as blockchain developers and product design managers. 

Living the Dream 

Prosecutors found that some of the employees who invested 2 million won ($2000) cashed out big from the investments as the assets surged after launch and followed the same trend as LUNC, which rose to $100 after a few years of launch. 

The Terraform Labs investors turned their 2 million won into 140 billion won worth $100 million.

Some employees spent the proceeds from their investments on luxury imported properties, including vehicles like Lamborghini. Part of the funds also went to expensive apartments. 

Authorities believe the assets were manipulated in favor of the employees by raising the price as much as possible before dumping the tokens in the market which caused other investors to make losses.

“It is not a normal investment performance, but it is possible that it was an ‘organizational fraud’ of the executives and employees, including CEO Kwon Do-Hyung,” said the prosecutors. 

Law enforcement is currently investigating the “preservation of additional collections before prosecution by identifying those suspected of being ‘criminal proceeds’ among the assets earned by the employees.”

Authorities Claim that Do Kwon Manipulated LUNC Price 

Meanwhile, the latest development comes a few days after prosecutors alleged that Do Kwon, who is currently wanted in the country, directly ordered an employee to manipulate the market price of LUNC. 

Authorities claimed they had obtained evidence of a “conversation history” on Messenger, which Kwon specifically requested for manipulation. 

Prosecutor Lee Do-Yoon, from the South Korean Prosecutor’s Office, officially confirmed the claim, noting that he was not allowed to disclose the entire contents of the evidence.

Recall that authorities have been working to understand the cause of the sudden collapse of Terra (LUNA), now the LUNC blockchain, in May. 

A few months ago, law enforcement froze $67 million in Bitcoin (BTC) belonging to LUNA Foundation Guard after the company tried to move the assets from two crypto exchanges, KuCoin and OKX. 

Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!

South Korea Terra (LUNA)

About the Author

Chimamanda Marcel View all posts by Chimamanda Marcel


« Previous Post
Next Post »
Press Releases
Orbeon Protocol (ORBN) Ready for a Price Rise as Monero (XMR) is Neutral and Decentraland (MANA) Struggles
Press Release

Orbeon Protocol (ORBN) Ready for a Price Rise as Monero (XMR) is Neutral and Decentraland (MANA) Struggles

TMS Network (TMSN) Emerges as Top Contender as Polygon (MATIC) and Cardano (ADA) Signal Bullish Momentum
Press Release

TMS Network (TMSN) Emerges as Top Contender as Polygon (MATIC) and Cardano (ADA) Signal Bullish Momentum

BetFury Launches iGaming Event With $1M Prize Pool
Press Release

BetFury Launches iGaming Event With $1M Prize Pool

The Best Altcoins for 2023 and Beyond: Dogecoin (DOGE), Shiba Inu (SHIB) and Collateral Network (COLT)
Press Release

The Best Altcoins for 2023 and Beyond: Dogecoin (DOGE), Shiba Inu (SHIB) and Collateral Network (COLT)

Beginner Guides
Who Are Crypto Whales? The Only Article You Need to Read
Beginner Guides

Who Are Crypto Whales? The Only Article You Need to Read

What Is Solend and How Does It Work?
Beginner Guides

What Is Solend and How Does It Work?

What is Polkadot (DOT) and How to Buy It?
Beginner Guides

What is Polkadot (DOT) and How to Buy It?

What Is an Exchange Token in Crypto? Explained for Beginners
Beginner Guides

What Is an Exchange Token in Crypto? Explained for Beginners

Price Analysis
March Market Roundup: The Crypto Market Gains 10% in Thirty Days

March Market Roundup: The Crypto Market Gains 10% in Thirty Days

Guides

About Us

Bitcoin

Ethereum

Solana

Polygon

Ronin

NFTs

Web3

Metaverse

Company

About Us

Contact

Corrections

Privacy

Terms

Sitemap

Community
  • Facebook
  • Twitter
  • LinkedIn
  • RSS
Disclaimer

Information found on this website is those of the writers quoted. It does not represent the opinions of Coinfomania on whether to buy, sell, or hold any investments. Readers must conduct their own research before making any investment decisions. Use the provided information at your own risk.

Coinfomania Copyright © 2023.
Scroll to top
Skip to content