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.
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.
- Meta stops cryptowallet Novi - July 6, 2022
- Institutional investors open shorts on bitcoin en masse - July 5, 2022
- ‘Cryptobank Celsius must lay off a quarter of its staff’ - July 4, 2022