South Korean authorities issued permission to detain the head of Terra

The project’s other managers have to report on entry into the country

28.07.2022 - 06:45

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2 min

What’s new? The Ministry of Justice of South Korea has granted the prosecutor’s request to further investigate the alleged fraud by Terraform Labs (TFL) initiated after the collapse of the Terra blockchain ecosystem. Thus, the managers of the project are required to report their arrival in the country. According to local media, the head of TFL Do Kwon will be detained if he returns to South Korea. He is believed to be in Singapore at the moment.

Material by local media

What else is known about the case? According to the ruling, the head of TFL will be required to attend all court hearings for lawsuits against him. Law enforcement officers began investigating the founder of TFL and the company’s other employees in late May to see if the team knew about the possible collapse of the ecosystem.

Earlier, the local authorities called on Kwon to speak in parliament, and law enforcement officers asked the exchanges to freeze assets belonging to the Luna Foundation Guard, which was created to support Terra. The organization was suspected of embezzling funds from investors. The company is also suspected of money laundering through a shell company and tax evasion.

On July 20, the prosecutor’s office conducted searches at 15 companies as part of the investigation, including seven crypto exchanges. During the raids, the investigation team was able to uncover details of transactions involving the original token LUNA. The police will analyze the material found and interview witnesses before determining the extent of the damage and the extent of Do Kwon’s involvement in the case.

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