The South Korean police have reportedly launched an investigation into attainable embezzlement involving an worker of Terraform Labs. To forestall fund transfers, the police have requested crypto exchanges to freeze the Luna Basis Guard’s accounts.
Embezzlement Investigation and Asset Freeze
The Seoul Metropolitan Police Company’s Cybercrime Investigation Unit introduced Monday that it has launched an investigation into attainable embezzlement by an worker of Terraform Labs, native media reported.
An official from the Seoul Metropolitan Police Company was quoted by Chosun as saying:
We now have obtained data that there’s a individual suspected of embezzling company funds who’s believed to be an worker of Terraform Labs.
The police obtained reviews of the alleged embezzlement in the center of this month and have been wanting into the case. As a part of the investigation, the police plan to test the main points of money and crypto transactions of Terraform Labs and the Luna Basis Guard (LFG).
The police defined that there’s proof that embezzled funds had flowed into the Luna Basis Guard’s accounts. The cybercrime unit has due to this fact requested main home cryptocurrency exchanges, reminiscent of Upbit and Bithumb, to “urgently” freeze the accounts belonging to the Luna Basis Guard to forestall withdrawals of funds held at crypto exchanges.
Nonetheless, the police’s freeze request will not be a obligatory matter in response to Korean legal guidelines and rules however a matter that must be arbitrarily carried out by every crypto change. Due to this fact, it has not been confirmed whether or not the freeze requests have been carried out, the publication conveyed.
Cryptocurrency terra (LUNA) and stablecoin terrausd (UST) collapsed earlier this month after UST misplaced its peg to the U.S. greenback.
Following the collapse, the Korean authorities launched an emergency investigation into the 2 cash and met with representatives of the nation’s high crypto exchanges to debate measures to forestall comparable incidents from taking place.
Final week, various victims filed a lawsuit in opposition to Terraform Labs CEO Kwon Do-hyung (aka Do Kwon) with the Seoul Southern District Prosecutors Workplace on fees of violating the Act on the Aggravated Punishment of Particular Financial Crimes (fraud) and the Act on the Regulation of Comparable Receipts.
As well as, Do Kwon dissolved Terraform Labs Korea days earlier than the collapse of LUNA and UST. Whereas many suspected foul play, Kwon claimed that the timing was simply “coincidental.” He additionally claims that his firm doesn’t owe the Korean authorities any taxes.
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Kevin Helms
A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source methods, community results and the intersection between economics and cryptography.
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