South Korean authorities banned Terra’s main developers from leaving the country
According to the preliminary results of the investigation, the collapse of the ecosystem may have been caused by the company itself
20.06.2022 - 14:55
333
1 min
0
What’s new? South Korean prosecutors have launched an investigation into Terraform Labs (TFL) following the collapse of the TerraUSD (UST) stablecoin and the Terra native token (LUNA). Law enforcement officials issued an order banning the project's chief developers from leaving the country. This is reported by the local publication JBTC.
How did the events develop? According to local media reports, the Joint Financial and Securities Crimes Investigation Unit of the Seoul Southern District Prosecutor's Office imposed a travel ban on a certain citizen A. According to him, the CEO of TFL Do Kwon was illegally selling cryptocurrency to companies in order to make large profits. The prosecutor's office wants to know if the funds raised in this way were used to artificially inflate the price of LUNA.
Preliminary conclusions from the prosecutor's office. The investigation found that Terra's collapse may have been the result of the company's own actions, since the wallet whose transaction was followed by the collapse of the ecosystem was actually maintained by TFL. The company is also accused of laundering $4,8 million through a South Korean shell firm that allegedly provided blockchain consulting services.
On June 10, the US Securities and Exchange Commission (SEC) initiated an investigation into the collapse of UST. The regulator will check whether the stablecoin's marketing strategy violated federal investor protection laws.
Useful material?
Market
Tether Finance division will be responsible for the issuance and redemption of USDT stablecoins
Apr 18, 2024
Trends
The first project introduced on the platform will be BounceBit (BB)
Apr 18, 2024
Business
The rate exchange of the native ACH token reacted with a 10% increase
Apr 18, 2024
Market
Miners are hunting for the first block after halving as the value of the first satoshi could exceed $1 million
Apr 18, 2024
Market
The platform will be non-custodial and accessible to everyone
Apr 15, 2024
Market
China Asset Management, Harvest Global Investments, and Bosera Asset Management have received permits
Apr 15, 2024