Crypto News :- Terra Luna Investigation
Terra Luna Investigation Start according to local media reports, Two South Korean financial agencies have initiated emergency inspections of local crypto exchanges due to the dramatic collapse of Terra. An South Korean parliament member has requested an inquiry by the parliamentary committee into the matter, requesting local exchange officials and Terraform Labs CEO Do Kwon to be called in as witnesses.
South Korea Launches Terra Probes
South Korea seems to be focusing on the crypto market following the implosion of Terra.
South Korea’s Financial Services Commission and the Financial Supervisory Service have reportedly started “emergency” inspections into local cryptocurrency exchanges as a way to improve investor protections after Terra’s demise the local newspaper Yonhap first reportedTuesday. According to sources in the industry quoted by the paper The two regulators demanded that local crypto exchanges disclose information about UST or LUNA transactions, which includes trade volume, price changes and the number of investors affected.
“Last week, financial authorities asked for data on the number of transactions and investors, and sized up the exchanges’ relevant measures,” an official of the local exchange said to Yonhap. “I think they did it to draw up measures to minimize the damage to investors in the future,” they claimed, adding that the authorities also requested that the exchanges provide an in-depth analysis of the incident and outline their measures to counteract the incident.
The Terra blockchain, which houses the UST “stablecoin” and native governance token LUNA, was created in Singapore by Terraform Labs, a company that was founded by and co-founded by Do Kwon. The algorithmic stablecoin UST was first de-pegged from its intended parity with dollars around May 8. However, despite Terraform Labs and the Luna Foundation Guard’s efforts to stop the cascade using its reserve funds for Bitcoin, UST and LUNA declined further over the next days, wiping out around $40 billion within the span of one week.
Due to the disaster the billions of dollars removed from the crypto market, and a number of reports were circulated of investors taking their lives as a result of the event. In the words of Yonhap there are approximately 200 000 South Koreans are presumed to have made investments into UST and LUNA which is the reason for local authorities’ recent concern over the incident.
A different local publication, Newspim, published on Tuesday it was reported that South Korean parliament member Yun Chang-Hyun has requested an investigation into Terra and has urged local crypto exchange officials and Kwon to be called in as witnesses. “We should bring related exchange officials, including CEO Do Kwon of Terra, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors,” the source stated at a plenary of the Assembly’s Political Affairs Committee.
Chang-Hyun also raised doubts about the conduct of local exchanges in the aftermath of Terra’s collapse, suggesting that the volume of transactions might have encouraged exchanges to maintain trading instead of shutting it. “As there’s an old saying that says, ‘Even if the price of a coin falls and the exchange is liable for fees.’ Upbit, which was the first to cease trading after the market crash is the most popular company that has an 80% share. In just 3 days it made more than the sum of 10 billion won [$7.8 millionin commissions,” he said.
Despite the seriousness in the matter, police in the area have stated that no civil lawsuits concerning Kwon and Terraform Labs had been filed on Monday, which means authorities haven’t initiated a criminal investigation into the issue.
As of press time, UST is trading at approximately $0.087 and LUNA has dropped to zero, leaving very little chance of a potential eco-system revival. Kwon has proposed the idea to split Terra’s Terra blockchain and to launch an entirely new token, however it is not surprising that the Terra community has been overwhelmingly against the idea.
But whole community as Per latest News rejects that revival plan as per community they did not want Another coin they just want to apply Binance CEO Plan that was to Buy back extra supply from the exchanges and Burn them.
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