Private Communication Reveals Do Kwon Allegedly Instructs Co-Worker To Manipulate Price Of Luna Token

Zinger Key Points
  • South Korean officials claim Terra founder manipulated price of Luna tokens, citing his messenger exchanges with an employee.
  • Do Kwon is believed to be hiding in Europe, according to South Korean officials.

Terraform Labs founder Do Kwon has been accused by South Korean prosecutors of allegedly instructing one of his employees to manipulate the price of Luna Classic LUNC/USD, formerly Terra (LUNA) token.

The prosecutors used messenger interactions between Kwon and his employee as evidence.

A report by the South Korean news outlet Naver threw additional light on specific details related to the collapse of the algorithmic stablecoin of the Terra ecosystem.

The report linked Kwon to the crisis that ensued.

Also Read: Terra Co-Founder Do Kwon Faces $57M Lawsuit From International Investors

The report also claimed Kwon instructed one of his workers to "artificially adjust" Terra's price to match a specific price.

According to the prosecution's office, messenger conversations between Kwon and the employee form the basis for this accusation.

“I can’t reveal the details, but it was a conversation history where CEO Kwon specifically ordered price manipulation,” an official from the prosecutor’s office stated.

Do Kwon On The Run, While Attorneys Claim Innocence

Kwon is believed to be on the run as he is being investigated by several agencies simultaneously. According to South Korean authorities, Kwon might be in Europe.

The defense team for Kwon has consistently claimed their client is innocent of any wrongdoing and that he also had nothing to do with the collapse of the algorithmic stablecoin Terra Classic LUNC/USD

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Photo: Terra video screenshot

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Posted In: CryptocurrencyGovernmentNewsLegalTop StoriesMarketsalgorithmic stablecoincryptocurrenciesDo KwonSouth KoreaStablecoinTerraterra blockchainterra ecosystemterra luna
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