In South Korea, the Attorney General’s Office launched an investigation into the circumstances leading to the collapse of the Terra/Luna and UST cryptocurrencies, interrogating employees who worked at Terraform Labs.

One of the main reasons for launching the investigation is that Terraform Labs CEO Do Kwon allegedly knew about the risk of launching the Luna algorithmic stablecoin and the possibility of its collapse.

At the same time, all employees of Terraform Labs are under investigation. They are required to provide information to help the proceedings.

The US Attorney’s Office issued a statement against the new launch of TerraUSD (UST) as the pilot model suffered a major setback.

South Korean prosecutors are also investigating other aspects of the case, such as whether there was intentional price manipulation or whether Luna and UST went through a due diligence process when listing.

To date, more than 76 complaints have been filed in South Korea, and the claimed damages for all victims are almost $5.5 million.