After the now-infamous crash of a major stablecoin last month, its repercussions are slowly taking up center stage in the world of crypto. South Korean law enforcement agencies have opened an investigation case into Terra Labs for allegedly embezzling $3.5 billion worth of bitcoin (BTC), Financial Times confirms.
The Seoul Metropolitan Police Agency has responded to allegations of Bitcoin embezzlement by the company, which was said to have been in possession of $3.5 billion worth of bitcoin (BTC) in its reserves. These were supposed to be used to stabilize the price of UST.
After the stabilization attempt failed, people started asking where had all this Bitcoin gone.
Terraform Labs co-founder Daniel Shin has addressed these fraud allegations and denied all of them, saying that Terraform Labs never had any “intention of deception” and the aim of the company was to innovate the system of payment settlements.
The collapse of the stablecoin left countless amounts of investors in peril, and South Korean authorities have estimated that 280,000 of the country’s citizens were affected as well. That is the reason why the Police Agency has decided to look into this case.