Terra 2.0 Drops 80% And South Korea To Investigate All Terraform Labs Employees
Earlier in May, we saw UST and Terra fall and bring the rest of the market down with it. In a recovery attempt, Terra 2.0 (Luna) was relaunched on a new blockchain and airdropped to old Luna users over the weekend. Their distribution plan includes allocating 70% of the new token to previous LUNA, UST, and aUST holders. Eligible addresses were able to claim the airdrop through Terra’s website or certain exchanges.
At the time of writing, Terra (Luna) is trading at $6.39 USD, while the original (now called Terra Classic - LUNC) is at $0.0001339.
An investigation of Terra founder Do Kwon was already ongoing, but prosecutors are now investigating whether employees were aware of a potential collapse before it occurred.
Prosecutors gathered a statement implecating reservations against launching Luna and Terra due to a filed pilot model. After this, South Korean prosecutors reportedly summoned all Terraform Labs employees to further investigate the protocol and company.
With allegations of a Ponzi scheme and internal price manipulations, the outlook of Terra 2.0 does not look favorable.
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