South Korean authorities ban key Terra developers from leaving the country

Posted 21 June, 2022

The Seoul Southern District Prosecutor's Office has banned key Terra developers from leaving the country, writes the  South Korean edition of JTBC. Authorities are in contact with the platform's employees, but fear that the witnesses may try to avoid participating in the investigation and leave South Korea, the paper said.

In connection with the investigation into the collapse of the UST and LUNA cryptocurrencies, an employee was summoned to court who reported the machinations of the founder of Terra, Do Kwon, according to the media. The witness claims that Do Kwon "made enough money to buy the island."

It is also noted that, if necessary, the authorities will conduct searches for the purpose of confiscation. According to the publication, the investigation against Kwon himself will not begin soon, since the founder of Terra is now in Singapore.

At the end of May, the South Korean prosecutor's office began checking Terra for signs of a financial pyramid. The collapse of Terra Blockchain-backed UST began on May 8th. The cryptocurrency lost its peg to the US dollar after a one-off sale of about $300 million worth of tokens. 

To restore the token, the Luna Foundation Guard reserve fund sold billions of dollars worth of bitcoins and other cryptocurrencies. Also, the emission of the LUNA token was increased to 6.9 trillion, it was offered to investors to buy at a 50% discount.

Crypto company Terraform Labs restarted the Terra 2.0 network and distributed new tokens on May 28. LUNA and UST holders of the old version of the network received new Luna 2.0 coins.

 

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