Law enforcement agencies of South Korea study the possibility of initiating a criminal case against the founders of Terraform Labs. This company issued the stablecoin TerraUSD, offering its holders an income of up to 20% per annum, but as a result, its rate fell to zero.
Investigators believe that the Terra USD project was launched under a financial pyramid scheme. This, in particular, is indicated by the fact that the owners of Terraform Labs decided to close the company a few days before the fall of the coin itself. Probably, they were aware of the initial futility of their project, but they still urged crypto investors to invest in it.
In theory, the TerraUSD coin should be relatively strongly pegged to the dollar, which would help avoid strong volatility – that is, a sharp rise or increase in the rate. Crypto investors were promised a relatively small (by the standards of the cryptocurrency market), but stable and guaranteed income. The collapse of TerraUSD led to losses not only for investors, but also for several cryptocurrency exchanges. For example, the Binance exchange is known to have lost more than a billion US dollars on it. Some investors have invested all their savings in TerraUSD because they mistakenly saw this coin as an instrument for risk-free investment.
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