South Korean investigative teams, Terra (Luna) regarding the fraud allegations against Do Kwon and Daniel Shin. cryptocurrency completed the search and seizure procedures in their companies.
Prosecutors will analyze transaction records and other evidence material collected to issue subpoenas.
South Korea Plans Strict Penalties Before Digital Asset Reform in Terra Investigation
South Korea is investigating the perpetrators responsible for the collapse while strengthening its cryptocurrency regulations to prevent catastrophes like the Terra-LUNA collapse.
The Seoul Southern District Procuratorate’s Financial Securities Crimes Joint Investigation Team completed a week-long search and seizure, a local news agency reported on July 28, 2022.
Prosecutors conducted an operation against 15 companies, including 7 cryptocurrency exchanges, and Daniel Shin’s home, collecting evidence on TerraForm Labs, Do Kwon, and Daniel Shin.
By analyzing transaction records and forensic data, prosecutors will sue Do Kwon, Daniel Shin and related companies on charges of fraud, money laundering and tax evasion.
Meanwhile, according to local reports, South Korea’s Financial Services Commission and Financial Audit Service finalized their work plans to draft the “Digital Asset Base Law” in October.
South Korea will also categorize digital assets as securities and non-securities based on the US review.
The South Korean government wants to punish the criminals responsible for the Terra crash and related illegal transactions before the Digital Asset Base Law is completed.
*Not investment advice.