Terra’s Main Designers Are Barred From Leaving South Korea
Following the catastrophic collapse of Terraform Labs’ stablecoin TerraUSD (UST) and native token Terra (LUNA), the South Korean prosecution is strengthening its probe of the company, with the authorities filing an order barring Terra’s key designers from leaving the country.
According to South Korean media site JBTC, the Seoul Southern District Prosecutor Office’s Joint Financial and Securities Crime Investigation Team recently put a departure ban on Mr. A as part of their investigation.
Mr. A previously informed the newspaper that he spoke with Do Kwon, the CEO of Terraform Labs, who purportedly assured him that he had “made enough money to buy an island.” Mr. A also revealed to reporters that Kwon secretly traded cryptocurrencies to institutions in order to raise big sums of money.
Prosecutors are looking into whether the funds raised in this manner were used to artificially inflate the coin’s price as part of the probe.
The report also indicated that the prosecution’s actions raise the potential of commencing a forced inquiry, which would entail search and seizure orders as well as summoning key personnel.
Meanwhile, further evidence suggests that Terra’s demise was an inside job, as the wallet designated as a “attacker” for making the transaction that caused the demise was actually kept by Terraform Labs.
Furthermore, Terraform Labs has been accused of laundering $4.8 million through a South Korean shell corporation in an elaborate scam involving the Seoul-based “blockchain consulting firm K.”
It was claimed in late May that the collapse had also prompted South Korean officials to organize a committee that would focus on stringent control and oversight of the crypto industry until the Digital Assets Framework Act was approved and a government agency was established.
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