The South Korean prosecutor’s office has summoned all employees of Terraform Labs to investigate the TerraUSD (UST) stabelcoin collapse. This was reported by local publication JTBC.
An unnamed employee who was involved in the initial development of the Terra blockchain in 2019 has reportedly already testified.
According to the employee’s testimony, some Terraform Labs developers have raised concerns about the UST design.
The JTBC also said that prosecutors are looking into whether CEO Do Kwon and other Terraform Labs executives neglected to develop the UST steiblock.
The prosecutor’s office is also reportedly looking into whether local exchanges conducted proper asset due diligence before listing UST and Luna.
Earlier this month, financial regulators in Korea launched “emergency inspections” at local cryptocurrency exchanges to increase investor protection.