Korea bans Earth (LUNA) developers from leaving the country

The case of the Terra network (LUNA) seems to have no end. This time, the country’s prosecutors are banning Terra developers and ex-developers from leaving the country. According to local news portals, the ban is in effect until investigations into the failed crypto project continue.

As reported by CriptoFácil, at the beginning of May, the Terra USD (UST) stablecoin, from the Terra network, lost its 1:1 balance with the US dollar.

Next, the project’s native cryptocurrency, LUNA, saw its price go to zero as part of the plan to save UST.

In the end, neither LUNA nor UST survived. In addition, the network had to go through a hard fork and LUNA 2.0 and Terra 2.0 were created. Meanwhile, the ancient LUNA and Earth became “Classic”.

Soon after the project’s demise, Do Kwon, creator of the project, began to be investigated both in Korea, the network’s host country, and in the United States.

travel embargoes

Now, according to Korean news portal JTBC News, authorities have set up a Joint Investigation Team on Financial and Securities Crimes.

The team says the travel embargo is to prevent people of interest in the case from leaving the country.

In addition, this measure may be a preparation for further investigative actions. This includes, for example, searches and seizures, as well as subpoenas for others involved in the case.

One of the former Terra developers, Daniel Hong, commented on Twitter about the decision of the country’s authorities:

“Stop asking me why I couldn’t make it to New York. That’s why: the Korean government imposed an exit ban on all former Terra employees today,” he tweeted Monday.

Hong then tweeted that none of them, the former developers, were notified of this. At the same time, he stated that the decision is outrageous:

“When I found out about this, the South Korean prosecution told me that they generally don’t notify people about it because they might destroy evidence and/or leave the country sooner. [Para ser honesto] treating people as potential criminals in this way is absolutely outrageous and unacceptable. I bet whoever was willing to cooperate won’t want to after this madness.”

Investigations in progress

It is worth noting that authorities are also investigating Terraform Labs, the company behind the project, for possible tax evasion in South Korea. The value of the alleged debt is about $78 million. On this matter, Kwon had previously said that the company has no outstanding tax debts in the country.

In addition, according to local sources, an investigation into an alleged money laundering scheme by Do Kwon is also underway.

As CriptoFácil reported, sources told the US CVM, the SEC, that Do Kwon moved $80 million in UST and LUNA tokens to his wallets and withdrawn them every month before the ecosystem collapsed. .

According to the SEC, Do Kwon started withdrawing $80 million a few months before the tokens collapsed. Therefore, they consider this activity suspicious and related to money laundering.

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