Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
An employee of Terraform Labs had embezzled funds belonging to Terra’s treasury, according to a report. But Do Kwon is not related.
- South Korean police investigate Terra for Bitcoin embezzlement.
- The investigation is not related to Do Kwon.
- Co-founder of Terraform Labs, Daniel Shin denied accusations of fraud.
The legal problems of Terraform Labs the parent company behind the ecosystem Earth The crisis does not seem to be over. After the historic implosion of the ecosystem. Earth regulators around the world have started to get tough on the project.
In South Korea, the authorities have been investigating the Terraform Labs, its founder and several of the most important exchanges cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market an area or arena, online or offline, in which commercial dealings are conducted. in the country after the collapse of the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. UST and the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. LUNA last month. Now, these efforts have been joined by a new investigation related to embezzlement of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
Korea investigates Bitcoin embezzlement
According to a report by Financial Times The Seoul Metropolitan Police Agency has launched an investigation into allegations of misappropriation of an undisclosed amount of the holdings of the Seoul Metropolitan Police Agency. bitcoins de Earth.
According to that report, an employee of the company may have embezzled bitcoins belonging to Luna Foundation Guard (LFG), a fund set up by the company that held about $3.5 billion in reserves of Bitcoin.
A few months before the collapse, the founder and CEO of Terraform Do Kwon, had announced a plan to acquire USD $10 billion in Bitcoin in order to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the stablecoin algorithmic project, UST. The company deployed funds from Bitcoin treasury when UST unpegged last month in an attempt to rescue its hoped-for parity with the dollar.
The South Korean police did not disclose the amount of bitcoins allegedly embezzled by the employee in question. However, they advanced that they had managed to freeze the stolen funds with the help of a local cryptocurrency exchange. They said they will remain blocked until the investigation is completed.
The authorities also clarified that the investigation into the alleged robbery did not have a direct connection to co-founder Do Kwon and are currently investigating individual charges of embezzlement, according to the report.
Co-founder denies fraud allegations
In an interview with Financial Times the co-founder of Terraform Labs Daniel Shin, business any allegations of malpractice or fraud. “ There was no intention to cheat, as we just wanted to innovate the payment settlement system with Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. technology.” , sostuvo.
The report is in line with recent efforts by South Korean watchdogs to make sense of the incident of Earth . A few days after the collapse, the local authorities began an investigation to learn about the role of the employees and the co-founder of Terraforms Labs in what happened. They also initiated an investigation into the exchanges .
In the last week of May, the Korean authorities subpoenaed all employees de Terraform Labs to investigate any internal role in market manipulation. Law enforcement also called on cryptocurrency exchanges to freeze funds associated with the treasury of Earth .
In the meantime, several reports have come out about the company. Among them, some documents indicate that Kwon had dissolved the corporation Terraform Labs Korea Two local offices had also been liquidated shortly before the collapse of UST. Cointelegraph notes that, in addition, the national tax agency fined the company USD $78 million on charges of tax evasion.
For their part, some South Korean investors have sued Kwon, who is a citizen in that country, alleging fraud. The project, which relaunched a few weeks ago, continues to face hurdles as regulators in other countries are also investigating. In the U.S., Kwon and Terraform will appear before the SEC for a research related to Mirror Protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. .
- UK regulator to examine Terra collapse for new crypto rules
- Terraform Labs legal team left the company after UST and LUNA token issues
- Terra’s Do Kwon Now Accused of Alleged Laundering Through South Korean Shell Company
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash