South Korean Prosecutor Investigates Terra Crash

According to reports, South Korean prosecutors found that shortly before the Terra crash, Do Kwon remitted 9 billion Korean won (approximately $7 million) to Kim&Chang, a large law firm in South Korea. The prosecutor is tracking the source of this money. The South Korean prosecutor stated that it can be inferred that Do Kwon was aware of the possibility of collapse in advance and prepared legal measures. This can serve as another basis for proving that Do Kwon is suspected of fraud.

Do Kwon remitted 9 billion Korean won to a law firm before Terra’s collapse

The South Korean cryptocurrency market is buzzing with news of the Terra cryptocurrency crash. According to reports, the cryptocurrency lost almost 50% of its value on August 20, 2021. While the reason for the crash is still unclear, South Korean prosecutors have started an investigation. In a recent development, the prosecutors have found that shortly before the Terra crash, Do Kwon remitted 9 billion Korean won (approximately $7 million) to Kim&Chang, a large law firm in South Korea. The prosecutor is tracking the source of this money. The South Korean prosecutor stated that it can be inferred that Do Kwon was aware of the possibility of collapse in advance and prepared legal measures. This can serve as another basis for proving that Do Kwon is suspected of fraud.
# Introduction
Cryptocurrency trading is a popular investment choice around the world, with new coins and tokens being introduced every month. The Terra cryptocurrency, launched in 2018, gained quick popularity and was listed on several exchanges. However, on August 20, 2021, Terra experienced a major crash, leaving investors in a state of panic. The reason behind the crash is still not clear, but one particular incident has caught the attention of South Korean prosecutors. In this article, we will discuss the details of the Terra cryptocurrency crash and the ongoing investigation by South Korean prosecutors.
# What is Terra Cryptocurrency?
Terra is a cryptocurrency launched in 2018 by a South Korean blockchain startup, Terraform Labs. The cryptocurrency provides a stablecoin platform that enables instant payments and low fees. Terra uses a unique algorithm called Luna that stabilizes the coin’s value in relation to fiat currencies like the US dollar, the South Korean won, and the Euro. The Terra cryptocurrency has seen significant growth and currently boasts a market capitalization of over $10 billion.
# The Terra Cryptocurrency Crash
On August 20, 2021, Terra crashed almost 50%, resulting in a loss of over $3 billion in market capitalization. The exact reason for the crash is still not clear, but there are several theories. Some have suggested that the crash was caused by a glitch in the Terra blockchain protocol, while others believe that it might have been the result of a coordinated dump by larger investors. The sudden price drop resulted in a panic sell-off and a further drop in price.
# South Korean Prosecutors Investigate
South Korean prosecutors have started an investigation into the Terra cryptocurrency crash, and it has been revealed that Do Kwon, the founder of Terraform Labs, remitted 9 billion Korean won (approximately $7 million) to Kim&Chang, a large law firm in South Korea, shortly before the crash. The prosecutor is tracking the source of this money, and it is suspected that Do Kwon might have prepared legal measures in advance, aware of the possibility of a collapse. This can serve as another basis for proving that Do Kwon is suspected of fraud.
# How Will the Investigation Affect Terra Users?
The ongoing investigation by South Korean prosecutors is likely to affect Terra users in several ways. If the prosecutors are able to prove fraud, it could lead to a major collapse in the value of the cryptocurrency, causing significant losses to investors. Moreover, the reputation of Terra and its parent company, Terraform Labs, could be permanently damaged, leading to a loss of investor confidence.
# Conclusion
The Terra cryptocurrency crash and the ongoing investigation by South Korean prosecutors have been the talk of the cryptocurrency market. While the reason for the crash is still not clear, the remittance of a large sum of money by Do Kwon shortly before the crash has raised several red flags. If the prosecutors are able to prove fraud, it could lead to a major collapse in the value of the cryptocurrency and a loss of investor confidence. It is essential for investors to keep an eye on the investigation and take necessary precautions.
# FAQs
Q1. What is the current value of Terra cryptocurrency?
A. The current market capitalization of the Terra cryptocurrency is over $10 billion.
Q2. What caused the Terra cryptocurrency crash?
A. The exact reason for the Terra cryptocurrency crash is still not clear. There are several theories, including a glitch in the Terra blockchain protocol and a coordinated dump by larger investors.
Q3. How will the investigation affect Terra users?
A. If the prosecutors are able to prove fraud, it could lead to a major collapse in the value of the cryptocurrency and a loss of investor confidence.
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