A report that was recently published from South Korea has claimed that the prosecutors in the country have already obtained evidence that suggests Do Kwon, the co-founder of Terra, had been manipulating the price of Luna Classic. This report comes from the Korean Broadcasting System, which claims that on the 3rd of November, officials from the South Korean prosecutor’s office received a conversation history where the CEO of the company specifically ordered manipulating the price of the cryptocurrency.
The reported evidence did come in the form of a messenger conversation between a former employee of Terraform Labs and Do Kwon. Interestingly, the prosecutors building a case on the ex-CEO didn’t disclose any further information.
South Korean Prosecutors Could Be Building A Case against Do Kwon
Although the exact details regarding the manipulation of the price still remain disclosed, the price action that Terra saw during the last bull market was one of the most impressive price actions throughout all cryptocurrencies. The price of the cryptocurrency rose over 2,800% from a sum of $4.18 in May 2021, to an all-time high of around $119.18 on the 5th of April, 2022. This was before the huge fall on the 30th of April- which was reported by data from CoinGecko. The report from the prosecutors in South Korea does state that the representatives of Kwon have constantly negated these allegations.
As it turns out, the CEO and his representatives have been making the rounds of previously denying any and all forms of alleged violations regarding the capital market laws in South Korea. Interestingly, despite Do Kwon claiming that he was not on the run, the whereabouts of the CEO have continued to be a mystery even now.
