Police oppose Luna Head’s request to freeze LFG funds in South Korea


With the UST stablecoin saga taking another twist, South Korea is starting to turn the screw on Terraform Labs and Luna CEO Do Kwon.

A 30-year-old Korean once said, “The oldest and most widely used algorithm.[rithmic] Stablecoins exist.”

Late last week, South Korean prosecutors launched an official investigation into Terraform Labs. The action came after five South Korean investors with combined losses of more than $1 million filed criminal charges. Victims of the collapsed Luna cryptocurrency network have accused Kwon of fraud and violating financial regulations.

As BeInCrypto reported at the time, authorities sought to charge the Luna leader with Ponzi fraud. DeFi platform Anchor Protocol has been popular with UST holders as it offers a staking yield of 20%.

authorities closing the nets

Another reversal occurred in this story as the Seoul Metropolitan Police Agency stepped in today. On May 23, local media reported report The South Korean police said they had contacted a major domestic cryptocurrency exchange with a request to freeze funds related to the Luna Foundation Guard (LFG).

The report added that police explained that they had clues to suspect that LFG-related funds could be related to embezzlement. However, the request was not a request and the Exchange currently reserves the right to act as it deems appropriate.

Police action this week has nothing to do with a legal investigation into the candid company CEO.

The self-proclaimed Terra detective “FatMan” is digging through the digital dust calling for more transparency about TerraForm Lab’s monthly spending. Chris Amani, Terra’s head of operations and community, insisted on working with the media “to provide accurate information.” said;

“Publish transaction logs for public viewing. Explain where the Project Dawn funds went. Describe how you spent $300 million on operations in one month. Fewer words, more financial proof”

“Kwon Do-kwon seemed like a successful cult leader, but now he is the most hated person in Korea,” said Donghwan Kim of Blitz Labs, a cryptocurrency advisory firm based in Seoul.

Terra Genesis Chain Proposal

The official Terra Twitter feed posted on May 24 that the plan to revive the troubled ecosystem involves an all-new blockchain rather than the aforementioned hard fork.

We explained that the important difference is that forked blockchains share all the history with the original chain, which is not shared by Terra 2.0.

If the proposal (1623) is passed, an entirely new Terra blockchain will be created from Genesis Block 0, which does not share records with Terra Classic.

disclaimer

All information contained on our website is posted in good faith and for general informational purposes only. Any action that readers take with respect to the information they find on our website is entirely at their own risk.

Leave a Comment