South Korean authorities summon Luna token team to court

South Korean prosecutors have summoned all employees of Terraform Labs, the cryptocurrency firm behind the Terra project (LUNA/UST), to testify.

The case is being investigated by the Seoul Southern District Prosecutor’s Office, which is responsible for investigating crimes related to finance and securities. Law enforcers will try to answer the following questions: whether the UST or Luna Classic exchange rate could have been deliberately manipulated and whether these crypto assets met the requirements for listing on trading platforms.

Investigators claim that the mechanism of the LUNA coins was initially faulty and they had no other way but to crash. That is why the mechanism could not cope with fluctuations in value and interest payments, the prosecutor’s office is confident.

It is worth noting that Do Kwon's team will have a tough time — in addition to being opposed by the country’s strongest law firm, the team was previously left by the top of the legal department.