• According to the prosecutor, a thorough investigation has begun into the Luna fall.
• The Seoul Southern District Prosecutors’ Office summoned all Terraform Labs employees.
• Investigators focus their attention on whether or not Terraform Labs officials were aware of and neglected LUNA’s poor design flaws from the start.

Two weeks ago, the tragic Terra LUNA collapsing was confirmed by the prosecution that they have begun an extensive investigation. The investigation of the former employees involved in development was completed over the weekend.

The crime investigation team of the Seoul Southern District Prosecutors’ Office summoned all Terraform Labs employees. Some of the employees revealed that “even at the time, there was a warning inside that there could be a collapse at any time, but CEO Do Kwon forced the coin to be launched.”

Another employee was also quoted as saying, “If you pay interest of several tens of percent to investors without a stable collateral or profit model, people may flock to you at the beginning,” but “at a certain point in time, it has no choice but to collapse because it cannot handle interest payments and fluctuations in value.”

Basis Cash, a virtual currency that was similar to Terra LUNA’s structure, was used as an illustration. However it ended up going the same way.

This led investigators to focus their attention on whether or not Terraform Labs officials, including the CEO, were aware of and neglected Terra LUNA’s poor design flaws from the start.

Prosecutors also will examine whether price manipulation was committed and whether there was a review of the proper listing.

Terraform Labs is now being sued by 76 people. After the Terra LUNA disaster, losses have increased to 6.7 billion won.

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