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Seoul police are investigating reports of a "suspicious" cryptocurrency wallet that may have been used to steal bitcoins by employees of the Terra insurance fund.
According to a representative of the Seoul Police Department, law enforcement officers assume that all bitcoins stolen from a "suspicious" cryptocurrency wallet previously belonged to the Luna Foundation Guard (LFG), created by Terraform Labs to maintain the peg of TerraUSD (UST) to the dollar.
Over a period of time, LFG has accumulated crypto reserves to protect UST's peg to the dollar.As of May 7, the reserves amounted to 80,394 BTC – about $2.9 billion.According to a report received by the police, as of May 16, LFG's reserves had dropped to 313 BTC.
Earlier this month, Changpeng Zhao, CEO of cryptocurrency trading platform Binance, tasked his exchange's investigative team to investigate the fraud allegations made by insider FatMan against the founder of Terraform Labs and the Terra project team.
</p>Responding to reporters' questions, Zhao said he could not confirm or deny the allegations until the exchange's investigation team had investigated the allegationseach of them.
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