Terraform execs to notify South Korean authorities of plans to leave the country
By Ihor Shulhach 1823 3 Aug 2022
Terraform Labs CEO Do Kwon, and co-founder Shin Hyun Seong have been notified by South Korean judicial authorities that they are not allowed to leave or enter the country without informing the appropriate authorities.
To cross the border, they will be required to fill out a special form called a “notification of arrival”.
The Seoul Public Prosecutor’s Office has imposed these restrictions as part of the investigation of the UST stablecoin collapse.
The Prosecutor’s Office issued this ban on crossing the border without notice when Do Kwon and Shin Hyun Seong were with former company executive Kim Mo in Singapore. The document concerns all members of Terraform’s management, both current and former. Later, security forces searched Shin’s apartment.
The investigation into the UST collapse began in May this year when the stablecoin lost its peg to the US currency. UST and Luna collapsed by nearly 100% and did not recover. The scope of the investigation has affected several other major crypto exchanges in the country, which were checked by security forces because of possible cooperation with Terraform. Thus, security forces searched offices and seized documents of such companies as Upbit, Bithumb, and Coinone. It’s worth noting that South Korea isn’t the only country where Terraform has trouble with the law. A class action lawsuit was filed against the company in America, where U.S. representatives accused the Koreans of selling tokens to large retail investors at inflated prices.
Now the total loss that investors have suffered from the fall of stablecoin equates to $40 billion.