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Korea Prosecutors Issue Departure Ban on Terra Main Designers

Korea Prosecutors Issue Departure Ban on Terra Main Designers Regulation News
  • South Korea’s Joint Financial and Securities Crime Investigation have imposed a departure ban on a Terra designer.
  • The prosecution’s investigation into the Luna-Tera crisis is on the rise.
  • CEO Kwon is claimed to have secretly taken a coin and sold it to institutions to raise a huge amount of money.

According to a South Korean TBC coverage on June 20, the Joint Financial and Securities Crime Investigation Team (Collaborative Team) of the Seoul Southern District Prosecutor’s Office issued a departure ban on “Mr. A,” one of the key designers of Terra’s mainnet project.

Mr. A claimed that Terraform Labs CEO Dohyeong Kwon, commonly referred to as Do Kwon, “made enough money to buy an island” in an interview with JTBC. Whether or not the cash was used to artificially boost the coin’s price is a point of interest for the prosecution.

Kwon was also accused of cashing out $2.7 billion before the Terra crash, which the crypto developer denied.

As a result, the prosecution’s withdrawal appears to be an attempt to prevent these important individuals from fleeing abroad to avoid further investigation.

The prospect of a forced investigation, including a search and seizure and “summoning by lines” of officials, is raised as a result of such measures to prevent departure.

The prosecution is presently working with Terra officials to plan the investigation’s schedule. “It isn’t possible to determine whether the departure ban is connected to the secrecy of the inquiry,” a representative from the Ministry of Justice said.

It’s also rumored that the prosecution is currently conducting a legal review to see if it’s possible to charge Kwon and others with fraud and violation of the Similar Receiving Act.

However, since Kwon is still in Singapore for an extended period, he must first take steps such as invalidating his passport to begin a legal inquiry. Given this, it is expected that the regulatory investigation of key management, particularly CEO Kwon, will take some time.

The US Second Circuit has recently ordered Terraform Labs to cooperate with subpoenas on the ongoing investigation of the Terra crash.

Lisa is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.