Saturday, June 22, 2024

South Korean prosecutors issue order to stop Terra’s key designers from fleeing country.

With ongoing investigations into Terra stablecoin UST collapse, authorities in South Korea have issued an order preventing its key designers from leaving the country. The Seoul Southern District Prosecutor Office’s Joint Financial and Securities Crime Investigation Team recently slapped a departure ban on “Mr. A” as part of its investigation.

Mr. A told a South Korean media outlet JBTC, that he had spoken with Do Kwon – the CEO of Terraform Labs – who allegedly told him that “he had enough money to buy an island”. He alleged that Kwon secretly sold the cryptocurrency to institutions to raise large amounts of money. The prosecutors want to know whether the funds raised were used to raise UST’s price artificially. It also raises the possibility of launching a “forced investigation” which would include search and seizure orders, as well as summoning key officers.

Moreover, the latest research indicates that Terra’s collapse may have been an inside job. The wallet identified as an attacker for generating a transaction that triggered the collapse was in fact maintained by Terraform Labs. Furthermore, Terraform Labs has also been accused of laundering $4.8 million through a South Korea-based shell company in an exploitative scheme involving a blockchain consulting firm K.

Terra’s collapse pushed South Korean authorities to establish a committee focused on strict regulation and supervision of the broad crypto industry. Authorities will also launch a government agency to oversee the crypto industry.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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