Terra is in the Limelight Again. A Bad One Too
By Lesia Dubenko 2128 11 Jul 2022
It seems like Terra is facing new problems.
On Wednesday, Korean Justice Minister Han Dong-hoon visited New York where he met with Andrea M. Griswold, co-chief of the Securities and Commodities Task Force at the U.S. Attorney's Office for the Southern District of New York, and Scott Hartman, chief of the Securities and Commodities Fraud Task Force. They talked about financial crimes, including cryptocurrency-related ones with a special emphasis on Terra.
The two parties discussed how to strengthen cooperation and information exchange between the Seoul Southern District Prosecutors Office and the Southern District of New York office in order to fight against major securities fraud and financial crimes.
They also agreed to share their data relating to the stablecoin TerraUSD and its digital coin counterpart, Luna.
South Korean prosecutors, which are deemed among the strictest in the world, are examining possible fraud charges regarding TerraUSD and Luna. Meanwhile, the U.S. Securities and Exchange Commission is investigating Do Kwon, co-founder and CEO of Terraform Labs, and whether the marketing of the TerraUSD breached investor-protection regulations.
Neither Do Kwon nor Terra has commented on these developments, with the former focusing on re-tweeting the crypto community’s pieces instead.
The news comes at a time when Terra is trying to revamp its network and Do Kwon refuting allegations of malpractice.
Recently, Terraform Labs announced that it is prepared to relaunch its protocol, renaming the chain from Terra Classic to Terra or Terra 2.0. According to the company, the “genesis of a new blockchain” is already underway.
In May, LUNA and UST made headlines for all the wrong reasons, with the two tokens collapsing. The UST stablecoin was depegged from the U.S. dollar while LUNA lost almost all of its value, affecting millions of customers.