According to KBS, the country’s official broadcaster, police authorities in South Korea are freezing assets linked to the non-profit group Luna Foundation Guard.
According to the report, the Seoul Metropolitan Police Agency requested that Luna Foundation Guard (LFG) be barred from withdrawing any business funds from various exchanges.
However, the exchanges are not required to do so by law, so it is uncertain whether those activities will be carried out, according to KBS. According to the article, police intervened after discovering signs pointing to embezzled money within LFG.
Some investors have already sued Terraform Labs creator Do Kwon following the latest Terra crisis, which saw the value of stablecoin TerraUSD (UST) plummet below $0.10. According to Chosun Daily, Korean legislators will meet with officials from five of the country’s largest exchanges on Monday and Tuesday to discuss the recent collapse of the Terra ecosystem.
According to Newspim, these firms are Upbit, Bithumb, Coinone, Korbit, and Gopax. They’ll very certainly have to answer whether or not they should be held liable for token holders’ losses. Yoon Chang-hyeon, chairman of the People Power Party’s Virtual Assets Special Committee, said in a Facebook post, “We would propose a quality investor protection policy to be implemented among exchanges.”
After the value of Luna, which is part of the Terra ecosystem and was supposed to help UST preserve its dollar peg, Coinone halted trade. Korbit and Bithumb both issued “investment cautions” at the same time.
Read more: Hong Kong Police arrests a man accused of stealing $191085 from a Crypto Trader
