We have written several times about the now-infamous collapse of the great stablecoin, which occurred last month and whose consequences are slowly but surely gaining attention in the world of cryptocurrencies. As confirmed by the Financial Times, law enforcement agencies in South Korea have launched an investigation into Terra Labs for alleged $ 3.5 billion in bitcoins (BTC) embezzlement. The Seoul Metropolitan Police Agency, which was to own bitcoins (BTC) in its reserves, which were supposed to stabilize the price of stablecoin, also responded to the allegations.
It is an unprecedented collapse that has left countless investors in danger, and the South Korean authorities have estimated that 280,000 citizens have been affected. The police force, therefore, decided to investigate the case. Terraform Labs co-founder Daniel Shin also responded to the situation, denying all allegations, and saying that Terraform Labs never had any fraudulent intent. As we informed you in the following article on this topic, a vast number of people even considered suicide after this crash, as many of them lost everything they had. So it is inevitable that some people will remember this situation for the rest of their lives.