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do kwon, embezzlement, embezzling funds, freeze accounts, freeze belongings, freeze funds, Korean police, lfg, LUNA, luna basis guard, terra (LUNA), TerraUSD, terrraform labs, UST
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The South Korean police have reportedly launched an investigation into potential embezzlement involving an worker of Terraform Labs. To stop 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 potential 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 have now acquired info that there’s a individual suspected of embezzling company funds who’s believed to be an worker of Terraform Labs.
The police acquired experiences of the alleged embezzlement in the course of this month and have been wanting into the case. As a part of the investigation, the police plan to examine 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 subsequently requested main home cryptocurrency exchanges, similar to Upbit and Bithumb, to “urgently” freeze the accounts belonging to the Luna Basis Guard to stop withdrawals of funds held at crypto exchanges.
Nonetheless, the police’s freeze request is just not a obligatory matter based on Korean legal guidelines and laws however a matter that must be arbitrarily carried out by every crypto trade. 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 stop related incidents from taking place.
Final week, various victims filed a lawsuit towards Terraform Labs CEO Kwon Do-hyung (aka Do Kwon) with the Seoul Southern District Prosecutors Workplace on expenses of violating the Act on the Aggravated Punishment of Particular Financial Crimes (fraud) and the Act on the Regulation of Related 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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