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Korean Police Urges Cryptocurrency Exchanges To Freeze Terra’s Assets

Written by: Qadir AK

May 25, 2022

While promoting a revived plan to fork Terra with a new token that excludes TerraUSD, Do Kwon is facing legal action in South Korea. After asking cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax to freeze Luna Foundation Guard assets, South Korean officials are expected to meet with them on Wednesday.

The Terra community’s South Korean investors have filed a lawsuit against Terraform Labs’ cofounders. In response to the catastrophic crash of Terraform Lab’s LUNA and TerraUSD, investors have launched a lawsuit against Do Kwon and Daniel Shin (UST).

South Korean officials have ordered Upbit, Bithumb, Coinone, Korbit, and Gopax cryptocurrency exchanges to freeze funds tied to the Luna Foundation Guard (LFG). On May 25, 2022, the authorities organized a meeting with exchanges. 

The ruling party in South Korea will debate the Terra de-peg event and if they should be held liable for monies lost by investors in the LUNA, UST disaster. 

Police investigation on LUNA

According to KBS, the South Korean police want to freeze LFG’s assets and investigate the loss of user funds in the massive Terra meltdown. The regulatory entity that urged exchanges to freeze funds kept in Terra-affiliated wallets is the Seoul Metropolitan Police Agency’s cybercrime investigative section. The police are suspicious about corporate cash being misappropriated, according to the same KBS story.

While the exchanges are not required by law to freeze cash, they may comply with the request of the South Korean authorities. 

Do Kwon, co-founder of Terraform Labs, has lately appeared on social media to inform LUNA holders that mailing their LUNA to the burn address is not a smart idea. Kwon has requested the community to vote on favour of the revival proposal by Wednesday.

The Terra fork and the withdrawal of algorithmic stablecoin UST from the LUNA ecosystem are supported by 65.78 percent of voters. According to polling statistics, approximately 35% of people continue to oppose or criticise the fork concept. 

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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