Countries are concurrently investigating Terraform Labs’ activities for fraud and trading in unregistered securities

South Korean and US authorities discuss investigations into Terra

11.07.2022 - 13:10

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1 min

What’s new? South Korean Justice Minister Han Dong-hoon met with US investigators regarding the countries’ separate investigations into Terraform Labs (TFL) and its head Do Kwon. Han also met with representatives from the FBI during his visit to the States, at which the officials agreed to strengthen cooperation in the fight against transnational crimes, such as cybercrime involving cryptocurrencies or ransomware.

Forkast’s material

Terra situation. In late May, the South Korean Prosecutor’s office launched an investigation against TFL employees on suspicion that they knew about Terra’s possible collapse. Key developers were later banned from leaving the country. Also, the local tax service reported that TFL was laundering money through a shell company.

In June, the US Securities and Exchange Commission (SEC) launched an investigation into Do Kwon. He is suspected of involvement in the organization of trade in unregistered securities through the Mirror protocol, created on the Terra blockchain.

For more details on the lawsuits against Terra, see the GetBlock Magazine editorial’s feature.

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