Investing.com – The twists and turns in the network collapse case and its cryptocurrencies never end.
Indeed, the South Korean news agency JTBC reported last weekend that the South Korean government is continuing to investigate Terraform Labs, the company behind the Terra Network, and has allegedly summoned all employees.
According to the report, authorities are reviewing the case to see if there are any signs of intentional price manipulation and whether the tokens have gone through proper listing procedures. In other words, if Terra’s collapse was planned and intentional.
Investigators also allegedly alleged that the mechanism of the Terra token was flawed in the first place, as the UST stablecoin is not tied to a collateral or stable profit model. “At some point, there is no other way but to collapse because he cannot handle the interest payments and fluctuations in value,” authorities reportedly said.
This news comes as Terraform Labs relaunched the new Terra chain, Terra 2.0, on May 28 in a bid to revive the Terra ecosystem, an attempt since the new LUNA token crashed shortly after launch.