Monday, September 25, 2023
HomeAltcoinsSouth Korean authority summons crypto exchanges to take responsibility for Luna crash

South Korean authority summons crypto exchanges to take responsibility for Luna crash

Following the collapse of LUNA, the South Korean government invited representatives of 5 key exchanges to the party’s emergency meeting on May 24, 2022, and invited representatives from cryptocurrency exchanges to take the responsibility for the loss.

These exchanges may consider these traders liable for the repercussions and damage caused by the Luna collapse. According to sources, the exchanges’ blacklisting could be to blame for the devastating drop. 

5 major exchanges responsible for LUNA loss, South Korean Government

According to information from South Korea’s Newspaperim, the five main exchanges’ representatives including Upbit, Bithumb, Coinone, Korbit, Gopax, and Dunamu were summoned.

The South Korean government is anticipated to establish exchanges that manage Luna transactions and are in charge of investor protection in connection with the Luna event.

LUNA fell to Zero in a week

Earlier, LUNA was believed to be a safe cryptocurrency with future growth, but following the crash, its value fell to zero in less than a week, leading all investors to lose money. Leading exchanges like Binance dropped LUNA on May 13, 2022, due to unpredictable price volatility. Other exchanges like Upbit, Bithumb, Gopax, and other domestic exchanges followed suit.

Information on basic law on virtual assets

Furthermore, at the same conference, each department is required to give information on the preparations for the Basic Law on Virtual Assets. Policy chairman of the committee Seong Il-jong, political chair of the committee Yoon Jae-ok, political committee secretary Kim Hee-gon, and digital asset special chairman Yoon Chang-hyeon will all be present from the governing party. Kim So-young, Vice Chairman of the Financial Services Commission, Kim Jeong-gak, Chairman of the Financial Intelligence Unit (FIU), and officials from affiliated ministries such as the Supervisory Service were present on the government side. Attendees will include the Financial Supervisory Commission, the Fair-Trade Commission, and the National Police Service.

South Korean authorities are freezing the Luna Foundation Guards’ assets, according to the source Naver. The authorities decided to freeze the finances after discovering that the embezzlement funds had been transported into the Luna Foundation Guard. Terra fall is the most dramatic in cryptocurrency history.

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