Terra developers forced to stay in South Korea
As a reminder, South Korea is particularly associated with Terra, first of all because Do Kwon, the CEO and founder of Terraform Labs, is Korean himself. Furthermore, a recent investigation by the local tax authorities concluded that the company is indeed Koreaneven if it is registered in Singapore.
The result of this is that Terraform Labs and its associates are under particular scrutiny by Korean authorities, who seem intent on making the Terra case an example. Regulators had already launched last May an emergency inspection of local platforms. And the legal setbacks are linked for Do Kwon and his collaborators, it seems that they will now be targeted.
In any case, this is reported by the local media JBTC. He explains that South Korea’s Financial Crimes Investigation Squad has been placed a ban on leaving the territory about former employees and developers involved in building the Terra blockchain. They are therefore de facto forced to stay in Korea for an indefinite period.
👉 Find our file to understand everything about the Terra / LUNA affair
A discreet decision on the part of the authorities
The news was directly implemented by developer Daniel Hong, who explained on Twitter that all former Terraform Labs employees were affected:
stop wondering why I couldn’t make it to NYC frens, here’s why: the Korean government has imposed an exit ban on all ex-@terra_money employees today pic.twitter.com/5Jds99ZNwQ
— Daniel Hong 🪄 (@unifiedh) June 20, 2022
According to Hong, those concerned were not directly notified of this decision. And for good reason, the people in charge of the investigation would have avoided warning the persons concerned, so that they were not tempted to destroy evidence or leave the country before they were asked to testify.
Hong was part of his anger on Twitter, saying he and his colleagues were being treated as “potential criminals”. He also said that it could have the opposite effect of the one desired, with former actors of Terra who would henceforth refuse to conform.
👉 On the same subject – Terra: $ 90 million was stolen from Mirror, and it went unnoticed for 7 months
The Terra Case Continues to Rescue the Cryptocurrency World
The Terra case created an earthquake last month, which was transmitted to very large cryptocurrency sectors, also contributing to the considerable fall in prices that we have witnessed in recent weeks. Reactions such as that of the Korean authorities have manifested in any case that the regulators Want to set a precedent with Terra.
At the end of last week, learning that a class action lawsuit was filed against Do Kwon in the United States. In addition, regulators have defined Terra’s UST as an example of the dangerousness of stablecoins… Without differentiating algorithmic stablecoins from others.
So these are definitely turbulent times for cryptocurrencies, and decentralized finance (DeFi) in particular. It can be predicted quite easily that this will enforce even stricter regulations for the sector.
👉 Related – Tron (TRX) USDD is now over-collateralized to avoid a Terra (LUNA) scenario
Sources: JBTC, Daniel Hong
About the Author : Marine Debelloir
Deputy editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about innovative technologies that require blockchain and I like to find the most crispy information to share with you.
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