South Korean authorities Prohibited one of the leading designers from leaving the Asian country.
The consequences of the Crashdown of the Terra spread like fire, and they are burning not only investors and the crypto environment in general but also the creators.
Terraform Labs, the entity leading the project, got investigated by the officials of that country. Do Kwon, the creator of Terra, received accusations of money laundering; and many other members got questioned.
On the other hand, the South Korean investigation of the entity is taking deeper paths, and authorities recently filed an order preventing one designer in Terra from leaving the country.
Retained Designer
The Securities and Financial Crimes Joint Investigation Team of the Seoul Southern District Public Prosecutor’s Office applied an exit prohibition on one of the core members of Terra as part of its investigation.
According to a South Korean media report, this designer previously told that he spoke with Do Kwon, the CEO of Terraform Labs, which allegedly explained that he had earned enough money to purchase an island. This team member also revealed to reporters that Kwon secretly sold the digital asset to institutions to collect vast amounts of money.
As part of the investigation, prosecutors got interested in whether the funds gathered in this way got implemented to increase the price. The report also highlighted that the activities of the prosecution show the possibility of releasing a forced investigation that would add seizure orders and the subpoena of relevant officials.
After such events, there is a possibility that the prosecution will soon launch a forced investigation, which includes a search and seizure and the summoning of members of Terra. The authorities are also studying whether Kwon and other core members can get charged with illegal activities such as fraud.
As long as this Terra designer remains in the country, prosecutors could use the opportunity to launch further investigations into Terra, and this may include searches and even property seizures. At the moment, the prosecution is involving Terra officials in the case.
An Internal Crashdown
Meanwhile, new research highlighted that the Terra crash may have been an inside job, as the wallet detected as an attacker for creating a transaction that boosted the decline was actually under maintenance of Terraform Labs. On top of that, Terraform Labs received accusations of laundering at least $4.8 million through a South Korean shell entity.
The South Korean administration said that more than 200,000 South Korean citizens lost money when Luna and UST crashed. After launching investigations into the Terra crash, authorities are now directing the magnifying glass to people tied to the Terra developer team.
Do Kwon is Hiding in Singapore?
A relevant factor that may have informed this decision is that Do Kwon is currently in Singapore. This situation may have presented various legal obstacles for authorities to figure out what occurred when Terra fell.
A few weeks ago, the South Korean parliament summoned Do Kwon to explain what happened to Terra. It is unclear if this call got listened to as Do Kwon is not in the country. Kwon and his company, Terraform Labs, got accused of tax evasion in South Korea and must give a sum registered at US$80 million.
By: Jenson Nuñez
