Terra employees are being investigated by South Korean police for potential embezzlement

According to local media sources, the Seoul Metropolitan Police Agency's Cyber Crimes Investigations Unit received a report stating a Terraform Labs employee was involved in embezzling corporate funds on Monday.

Police investigating Terra Luna employee
Terra Luna | Image: Optimisus

The authenticity of the supposed report is currently being investigated by the authorities. The local news reports,

"The Seoul Metropolitan Police Agency's Cyber ​​Investigation Division announced on the 23rd that it had launched an investigation into Mr. A, who is believed to be an employee of Terraform Labs, for embezzling corporate funds. In the middle of this month, the police received information that Mr. A is suspected of embezzling corporate funds and is checking the facts."

In addition, the local media reports said that police have requested that local cryptocurrency exchanges freeze Luna Foundation Guard (LFG) funds as part of a related probe involving Terraform Labs.

Terraform Labs and LFG may have unlawful funds, which the police aim to discover, determine, and take.

Following a lawsuit filed by at least five Terra/LUNA investors, the Seoul Southern District Prosecutors' Office is investigating Terraform Labs and its cofounders Do Kwon and Shin Hyun-seung.