Summary:
South Korean Prosecutors have pressed a departure ban against a core designer of Terra’s crypto tokens as investigative efforts dive deeper into the LUNA Classic (formerly LUNA) crash.
According to local media outlet JTBC on Monday, officials from the Seoul Southern District Prosecutor’s Office in collaboration with the Joint Financial and Securities Crimes Investigation team issued a ban that prevents Mr. A from leaving the country.
Mr.A was reportedly identified as a core design team member for Terra’s tokens.
Former employees of Terraform Labs are also barred from leaving the country. One Daniel Hong disclosed the development via Twitter on Monday.
Apart from Mr. A’s involvement in Terra’s token designs, JTBC also reported that the figure could have inside knowledge of some of Do Kwon’s activities. The news house reported that Kwon supposedly said he “made enough money to buy an island” and that the CEO sold an unnamed coin to institutions for a considerable sum.
JTBC did not disclose the crypto token or the institutions supposedly involved.
Prosecutors are also reportedly exploring legal means to bring charges against Do Kwon and other Terra employees in connection to fraud and other violations. Asset seizures and search warrants are being considered as well, per the report.
The move is part of a broader investigation into LUNA’s crash, the token built by Do Kwon’s Terraform Labs which recently cratered and wiped out around $40 billion from investors’ pockets.
LUNA Classic was also a sister token to UST, an algorithmic stablecoin that promised high yield returns on protocols like Anchor. UST crashed alongside LUNA Classic.