Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets

Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets – According to local media, the Seoul Metropolitan Police Agency’s Cybercrime Investigation Unit said Monday that it had opened an investigation into alleged embezzlement by a Terraform Labs employee.

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Chosun quoted a police official from the Seoul Metropolitan Police Agency as saying:

“We have gotten information that a person accused of embezzling corporate funds is thought to be a Terraform Labs employee.”

The case was investigated after police received reports of possible embezzlement in the middle of this month. Terraform Labs and the Luna Foundation Guard’s cash and crypto transactions will be scrutinized as part of the investigation.

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There is proof that embezzled funds went into the Luna Foundation Guard’s accounts, according to the police. As a result, the cybercrime unit has asked major local cryptocurrency exchanges, such as Upbit and Bithumb, to “urgently” freeze the Luna Foundation Guard’s accounts to prevent withdrawals of cryptocurrency funds.

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However, according to Korean laws and regulations, the police’s call for a freeze is not mandatory, but rather something that each crypto exchange must decide on its own. As a result, the publication stated that it has not been verified whether the freeze demands have been carried out.

The stablecoin terrausd (UST) and cryptocurrency terra (LUNA) both crashed earlier this month after UST lost its peg to the US dollar.

Following the collapse, the Korean government started an emergency inquiry into the two coins and met with representatives from the country’s top crypto exchanges to discuss how to avoid future incidents.

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Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets – Last Thursday, a group of victims filed a lawsuit with the Seoul Southern District Prosecutors Office, accusing Terraform Labs CEO Kwon Do-hyung (aka Do Kwon) of infringing the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Act on the Regulation of Similar Receipts.

Do Kwon also dissolved Terraform Labs Korea just days before LUNA and UST collapsed. Many suspected foul play, but Kwon stated the time was simply “coincidental.” He also says that his firm owes no taxes to the Korean government.

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