While Terra has launched its new Terra 2.0 blockchain and aiming to regain its lost reputation, the South Korean authorities are growing more aggressive against Terra.
The authorities are now growing more and more aggressive against the Terra network. This is mainly because too much pressure is being implemented by the investors through their lawsuits against the authorities.
With so much demand coming in to bring the Terraform Labs and its founder, Do Kwon to the court, the authorities are trying to get to the bottom of the matter.
Initial Findings of the Authorities
As the South Korean authorities launched their investigation on the matter after May 12, they found very concerning information pertaining to TerraForm Labs dating back to late April.
According to the authorities, TerraForm Labs had already closed its headquarters and other branches in the South Korean region. They did it even before the crash of the Terra network was observed.
These findings sent the authorities on a high alert. Later, they asked all financial institutions and companies linked with Terra to cease all transactions Terra network. At present, the authorities are investigating all the unusual and high-valued transactions that have left the Terra network since early May.
It is Time for the Probe
The latest developments in the matter have revealed that the authorities have now launched a probe against the staff at Terra.
The probe into the staff at Terra means that the authorities will investigate the employees and workers at Terra to gather more information surrounding the matter.
For this purpose, the authorities have already started to send out a summons for the employees and workers at Terra. The South Korean authorities have summoned all the existing and former employees who are/were part of the Terraform Labs when the crash took place.
The investigation that was limited to transactions and companies linked with Terraform Labs has grown into a full-scale investigation against the company. The information surrounding the South Korean authorities launching the probe has been published by JTBC, a local news agency.
Authorities Involved in the Investigation
The authorities that will be carrying out the investigation on the matter are the securities crime investigation and the financial team. The Seoul South Prosecutors Office will be heading both of the teams throughout the investigation phase.
Korean Authorities will Keep Haunting Terra 2.0
As the Terra 2.0 was launched on May 28, it was hoped that things will come back to normal for Terra. Although it did seem like the case in the beginning after hitting a high price of $30, Terra’s price dipped to $6. The price of Terra experienced a $30 rise and then a $6 fall, within 24-hours of being launched.
As the legitimacy of Terraform Labs and Do Kwon is constantly being questioned by the South Korean authorities, it will definitely have a negative impact on Terra 2.0.
At the time of writing, Terra’s price is worth $7.19 and it has experienced a 24.07% rise in the past 24-hour time period. It is expected that the South Korean authorities’ investigation may now let Terra 2.0 grow up to its full potential.