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Korea Is Being Strict With Terra

The Korean authorities are taking stronger measures to serve the investigation of the collapse of Terra and UST.

Korea Is Being Strict With Terra 2

According to the Korean news agency JTBC News, the financial task force “Death” newly re-established by the Seoul government to investigate LUNA-UST has issued a decision to ban the exit and movement of employees and former employees by Terraform Labs, the company behind the Terra cryptocurrency project and stablecoin UST.

The decision could be a preparation step for officials to investigate more deeply into the project and why it collapsed. Prosecutors recently summoned several Terra employees to testify.

As reported by CoinCu, recently Terra’s Main designers are banned from leaving Korea.

This information was also confirmed by a former Terraform employee Daniel Hong, who stated on Twitter the following:

Mr. Daniel Hong claimed that he was not informed in advance because of the decision because the authorities were worried that the suspect would flee or destroy evidence. This person believes that he and the former Terra employees are being treated as “criminals” and cannot accept this.

However, there are opinions that this is a necessary action to serve the investigation. The account FatManTerra, one of the voices criticizing and revealing many behind-the-scenes secrets of LUNA-UST since the model’s collapse, commented:

Terraform Labs and CEO Do Kwon are facing numerous legal lawsuits in the US and South Korea surrounding the demise of LUNA-UST.

The company is also under investigation by South Korea for alleged tax evasion of $78 million and embezzlement but has been denied by Mr. Do Kwon. Although the market is stable, information about Terra always shows signs of instability.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.