Korean Police Wants to Freeze Luna Foundation Assets

Korean law enforcement authorities are taking action against the Luna Foundation Guard (LFG) by freezing all assets associated with non-profit organizations.

Korean police oppose LFG

South Korea’s state broadcaster KBS reported that the Seoul Metropolitan Police Agency had ordered several exchanges to prevent LFG from withdrawing corporate funds or accessing assets. KBS also stated that it is entirely at the discretion of the exchange whether to follow this direction as the exchange is not mandated by law. Crypto exchange Coinone previously stopped trading Luna tokens shortly after the accident, while Korbit and Bithumb issued a warning to investors. KBS also reported that the police discovered that the foundation embezzled funds.

‘The Grim Reaper’ task force investigates the province

Luna Foundation Guard is a non-profit organization working to increase BTC holdings to support the TerraUSD (UST) stablecoin created by Terraform Labs. CEO Kwon Do is already under investigation for financial crimes and is being investigated by the prosecution for tax evasion. After disbanding two years ago, the task force was restored to investigate the events surrounding the devastating LUNA crash, especially when Terra’s market cap fell from $41 billion to less than $950 million in a week. The group will also investigate the extent of the damage suffered to investors as a result of the crash. According to reports, about 280,000 South Korean investors suffered as the project caught fire. According to reports, these investors are also preparing a class action lawsuit against the metropolitan area.

interact with legislators

collapse Terra Ecosystem The market crash caused a domino effect. It all started when UST lost a $1 peg, and LUNA’s value plummeted by nearly 100% and plummeted to $0. The token hit an all-time high in April 2022 and was trading at an average of $80 before the collapse. Accordingly, lawmakers are meeting with representatives of the top five domestic exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, to decide whether to hold these exchanges accountable for loss of investment capital.

Disclaimer: This article is provided for informational purposes only. It is not given or used as legal, tax, investment, financial or other advice.

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