Travel ban on Luna project developers in South Korea

Last Updated: 22 June 2022

Prosecutors of the Luna soap opera in Korea want the developers behind the Terraform Labs projects to be banned from leaving the country. An investigation into the failed crypto project is currently underway.

Travel ban

According to the Korean media outlet JTBC News, the Financial and Securities Crime Joint Investigation Team has imposed a travel embargo. This is to prevent the current and former developers of Terraform Labs from fleeing the country.

Those familiar with the case believe this step is in preparation for additional investigative actions, such as searches and seizures. Subsequent subpoenas may also be sought for the individuals involved.

One of the former Terra developers is Daniel Hong. On Twitter, he shares that developers like him, were not informed of the travel embargo.

“To be honest, I find it absolutely outrageous and unacceptable that people are treated like potential criminals in this way.”


Terraform Labs and big boss, Do Kwon, are at the centre of investigations and lawsuits in various jurisdictions. Cases have been filed both in South Korea and abroad following the collapse of both Luna and its ‘associated’ algorithmic stablecoin TerraUSD (USDT).

Luna dropped from $116 to $0.000058, while UST collapsed from the $1.00 peg to $0.0088. This makes the value of both tokens negligible.

Terraform Labs is under investigation for possible tax evasion. It is said to be about $78 million. Kwon has previously revealed that the company – according to him — has no outstanding tax obligations in the country.

It is also alleged that 80 bitcoin, worth $1.6 million, were stolen by an employee from the reserves of the Luna Foundation Guard. Funds were reportedly frozen at some crypto exchanges. An employee was arrested, and an investigation is currently underway to determine whether Do Kwon was involved.

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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