South Korean Government has Evidence Against Do Kwon

As it became known, South Korean prosecutors have evidence that CEO of Terraform Labs (TFL) Do Kwon is directly involved in the manipulation of the price of LUNA. The Korean Broadcasting System informed of the above, quoting a representative of the supervisory authority.

So, according to the report, the authorities gained access to the correspondence of Kwon and his employee.

“I can’t reveal details, but it was a [messenger] conversation history where CEO Kwon specifically ordered price manipulation,” the source said.

According to the Korean Broadcasting System, a Kwon’s representative has further denied the allegations. In addition, according to media reports, CEO of TFL is currently residing “somewhere in Europe.”

Recall that at the end of March this year, the cost of the native token of the Terra ecosystem exceeded $107. The upward movement of LUNA was accompanied by a surge in trading volume. The above was triggered by the active purchases of bitcoin by the non-profit organization Luna Foundation Guard in order to ensure the stability of the algorithmic stablecoin TerraUSD (UST).

On May 8, UST lost its peg to the USD. This was facilitated by the outflow of assets from the Anchor protocol, caused by a decrease in the rate of return on deposits to 17.87%.

The downward movement continued on May 11, and as a result LUNA, the cryptocurrency used to issue UST, crashed to $0.3.

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