South Korean authorities will act to freeze assets tied to the Luna Foundation Guard (LFG) in the near future.
At the same time, the Seoul Metropolitan Police Agency urged several crypto exchanges to restrict the withdrawal of corporate funds conducted by LFG.
However, crypto exchanges are not bound by relevant laws to do so. Thus, it is still unclear whether they will obey the instructions of the authorities or vice versa.
Interestingly, South Korean authorities have found evidence of money laundering activity in the LFG following the incident.
Perhaps the investigation was prompted by a suit filed by the dumping of LUNA and UST investors in the country last week.
Having denied Terra Labs ’tax debt allegations against the South Korean administration, what is presumably Terra’s CEO, Do Kwon’s reason for the suit and freeze by the authorities?
Meanwhile, five representatives from South Korea’s largest crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax were called to meet with lawmakers to be questioned on whether to be responsible for investor losses or not.
For the record, Coinone, Corbit, and Gopax stopped trading activities of LUNA and UST on May 10, and Bithumb on May 11, followed by Upbit on May 13.
The chairman of the People Power Party’s Virtual Assets Special Committee informed an investor protection policy would be applied to all exchanges.
To date, there have been no developments related to Kwon’s so -called South Korean parliament.
Looking at the incredible negative impact on Terra, is there still hope for Kwon to reintroduce the new Terra (LUNA) after the hard fork was protested by his community?
