Terra’s crash takes its toll. If South Korea’s sanctions against Terraform Labs and Do Kwon are severe, the Luna Foundation Guard (LFG) is not spared. Indeed, the country’s police authorities have decided to take measures to freeze the assets of the non-profit organization. The Seoul Metropolitan Police Agency has asked several exchanges to prevent the LFG from withdrawing funds. However, exchanges are not required to do so by law. It is therefore impossible, for the time being, to know whether they will comply with the demands of the police.
After Terraform Labs, the Luna Foundation Guard in the sights
Following Terra’s recent crisis, some investors have already sued the founder of Terraform Labs, Do Kwon. Although he said owe nothing to south koreait is also on the radar of the tax authorities.
According to a report of KBS, police said they intervened after finding clues that there was funds embezzled within the LFG. It is important to remember that South Korea had decided to lead the investigation a few days ago.
As part of this investigation, in relation to the recent collapse of the Terra ecosystem, Korean lawmakers must meet with representatives from five of South Korea’s largest stock exchanges.
South Korea also targets crypto exchanges
Exchanges Upbit, Bithumb, Coinone, Korbit and Gopax will have to report on their behavior during the crash. They will also have to answer the interviewers’ questions. The goal being to know whether or not they should be held responsible for loss of funds by LUNA and UST holders.
“We will demand that a quality investor protection policy be implemented by stock exchanges. »
People Power Party Virtual Assets Special Committee Chairman Yoon Chang-hyeon
The Coinone exchange had suspended LUNA trading after its value has fallen. LUNA is part of the ecosystem Terra and was supposed to help the UST maintain its peg to the dollar. At the same time, Korbit and Bithumb had published “investment warnings”.
Terraform Labs lost $30 billion this month. In addition, the infernal spiral of the UST stablecoin and the LUNA cryptocurrency cost investors billions worldwide. The LFG was to protect the UST peg using a multi-billion dollar hoard of bitcoins (BTC). She ultimately failed. The national tax agency has already imposed a fine of $78 million, or 100 billion won, on Terraform Labs and its co-founder, Do Kwon. Obviously, the problems continue.
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