According to South Korean national news site JTBC, the Seoul Joint Finance and Securities Crimes Investigation Team has placed a travel ban and a ban on leaving the country for the developers on the Terra team. Korean authorities have been investigating Terra developers for a while.
After the collapse of LUNA and UST, authorities Do KwonIt was on his neck. The scope of the investigation is being broadened as Korean authorities have now placed a travel ban on current and former members of his team.
This ban seems to have been taken to prevent the people in question from suddenly leaving the country, as there are rumors that a more serious investigation will soon be launched against the company.
A Terra employee David HongAccording to , the restrictions in question were never communicated to anyone before and this was done so that they would not destroy the evidence, he said:
“Honestly, treating people like potential criminals in this way is absolutely outrageous and unacceptable.”
Currently, the prosecution is said to be coordinating the investigation program with Terra officials. However, an official from the Ministry of Justice stated the following on the subject:
“It is not possible at this time to confirm whether the ban on leaving the country is related to the confidentiality of the investigation.”
On the other hand, in the USA Terraform LabsA class action lawsuit was filed against the Luna Foundation Guard and other individuals and entities associated with the operations. Plaintiff alleged that they misled investors as to whether all Terra tokens were actually securities.
In addition to selling unregistered securities with Terra tokens LUNA and UST, the defendants made a series of false and misleading statements about the Terra ecosystem digital assets to encourage investors to purchase these digital assets at inflated rates.
The lawsuit also highlighted Do Kwon’s unprofessionalism prior to the collapse of his tokens. Recent reports claimed that the UST and LUNA case was handled by the authorities.
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