Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets

The South Korean constabulary person reportedly launched an probe into imaginable embezzlement involving an worker of Terraform Labs. To forestall money transfers, the constabulary person requested crypto exchanges to frost the Luna Foundation Guard’s accounts.

Embezzlement Investigation and Asset Freeze

The Seoul Metropolitan Police Agency’s Cybercrime ​​Investigation Unit announced Monday that it has launched an probe into imaginable embezzlement by an worker of Terraform Labs, section media reported.

An authoritative from the Seoul Metropolitan Police Agency was quoted by Chosun arsenic saying:

We person received accusation that determination is simply a idiosyncratic suspected of embezzling firm funds who is believed to beryllium an worker of Terraform Labs.

The constabulary received reports of the alleged embezzlement successful the mediate of this period and person been looking into the case. As portion of the investigation, the constabulary program to cheque the details of currency and crypto transactions of Terraform Labs and the Luna Foundation Guard (LFG).

The constabulary explained that determination is grounds that embezzled funds had flowed into the Luna Foundation Guard’s accounts. The cybercrime portion has truthful requested large home cryptocurrency exchanges, specified arsenic Upbit and Bithumb, to “urgently” frost the accounts belonging to the Luna Foundation Guard to forestall withdrawals of funds held astatine crypto exchanges.

However, the police’s frost petition is not a compulsory substance according to Korean laws and regulations but a substance that needs to beryllium arbitrarily performed by each crypto exchange. Therefore, it has not been confirmed whether the frost requests person been carried out, the work conveyed.

Cryptocurrency terra (LUNA) and stablecoin terrausd (UST) collapsed earlier this period aft UST mislaid its peg to the U.S. dollar.

Following the collapse, the Korean authorities launched an emergency investigation into the 2 coins and met with representatives of the country’s apical crypto exchanges to sermon measures to forestall akin incidents from happening.

Last week, a fig of victims filed a suit against Terraform Labs CEO Kwon Do-hyung (aka Do Kwon) with the Seoul Southern District Prosecutors Office connected charges of violating the Act connected the Aggravated Punishment of Specific Economic Crimes (fraud) and the Act connected the Regulation of Similar Receipts.

In addition, Do Kwon dissolved Terraform Labs Korea days earlier the illness of LUNA and UST. While galore suspected foul play, Kwon claimed that the timing was conscionable “coincidental.” He besides claims that his institution does not beryllium the Korean authorities immoderate taxes.

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