Core Terra Designer Banned From Leaving South Korea - Ethereum World News

Summary:

Mr. A claims to have inside knowledge of certain dealings by CEO Do Kwon.
Investigators want to prevent the individual from leaving the country.
Do Kwon claimed to cash out enough money to buy an island, according to Mr. A.
Prosecutors are considering a search and seizure of Kwon’s assets.
Direct charges are also considered against the Terraform Chief and other employees.

South Korean Prosecutors have pressed a departure ban against a core designer of Terra’s crypto tokens as investigative efforts dive deeper into the LUNA Classic (formerly LUNA) crash.

According to local media outlet JTBC on Monday, officials from the Seoul Southern District Prosecutor’s Office in collaboration with the Joint Financial and Securities Crimes Investigation team issued a ban that prevents Mr. A from leaving the country.

Mr.A was reportedly identified as a core design team member for Terra’s tokens.

According to South Korean media JTBC, the Prosecutor’s Office issued a departure ban on one of Terra’s main designers. Prosecutors may also initiate mandatory investigations such as searches and seizures in the near future. Do Kwon remains in Singapore. https://t.co/VUh8SAUvVa

— Wu Blockchain (@WuBlockchain) June 20, 2022

Investigators Target Terra Employees and Do Kwon’s Assets

Apart from Mr. A’s involvement in Terra’s token designs, JTBC also reported that the figure could have inside knowledge of some of Do Kwon’s activities. The news house reported that Kwon supposedly said he “made enough money to buy an island” and that the CEO sold an unnamed coin to institutions for a considerable sum.

JTBC did not disclose the crypto token or the institutions supposedly involved.

Prosecutors are also reportedly exploring legal means to bring charges against Do Kwon and other Terra employees in connection to fraud and other violations. Asset seizures and search warrants are being considered as well, per the report.

The move is part of a broader investigation into LUNA’s crash, the token built by Do Kwon’s Terraform Labs which recently cratered and wiped out around $40 billion from investors’ pockets.

LUNA Classic was also a sister token to UST, an algorithmic stablecoin that promised high yield returns on protocols like Anchor. UST crashed alongside LUNA Classic.