Following the collapse of TerraUSD and Terra LUNA, South Korean authorities have banned the project’s main designers from leaving the country.
- Local media, JTBC reported that the Seoul Southern District Prosecutor Office’s Joint Financial and Securities Crime Investigation Team have imposed bans on key developers including one, Mr. A.
- Mr. A described in an interview with the media that Terra founder, Do Kwon, had “made enough money to buy an island”, a majority of this money coming from the private sale of LUNA to institutions. Prosecutors are investigating if funds raised in this way made for artificial ‘market price adjustment’.
- The prosecution could also lead to a forced investigation including search and seizure and ‘summoning by lines’ of officials. Although, JTBC states that the compulsory investigation of key management including Do Kwon himself may take some time
See Related: The ‘Terra’ble Fate Of $UST And Its Sister Coin, $LUNA