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Tuesday, March 28, 2023

South Korea Launches Emergency Investigation Into Collapse of LUNA and UST

South Korea Launches Emergency Investigation Into Collapse of LUNA and UST – South Korea’s top financial regulators have launched an emergency investigation into the fall of cryptocurrencies LUNA and stablecoin. Authorities have requested information on transactions and investors in the two coins from domestic cryptocurrency exchanges.

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Last week, UST’s peg to the US dollar was lost, causing its price and that of terra (LUNA) to fall. UST is currently trading for less than $0.09, while LUNA is nearly worthless.

The Financial Supervisory Service (FSS) and the Financial Services Commission (FSC), two of South Korea’s major financial authorities, have ordered local cryptocurrency exchange providers to submit information about UST and LUNA, according to reports.

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According to a representative from a local crypto exchange:

“Financial authorities asked for information on transaction volumes and investors last week, as well as a review of the exchanges’ proper procedures.”

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The exchange official continued, “I assume they did it to create methods to limit future investor damage.”

According to the publication, the authorities have demanded trading volumes, closing prices, and the proportion of relevant investors. The exchange operators have also been asked to disclose their remedies to the recent crypto market crash, as well as analysis of the crash’s cause.

Kwon Do-hyung, a South Korean national, invented UST and LUNA. His startup, Terraform Labs, is based in Singapore. Kwon has come up with a few proposals to resurrect the two cryptocurrencies after their collapse, but none of them have worked so far.

Also Read: Iran Blocks 9200 Bank Accounts Over Suspicious Foreign Currency, Crypto Transactions

South Korea Launches Emergency Investigation Into Collapse of LUNA and UST – After an unidentified man intruded into their apartment building in South Korea, Kwon’s wife reportedly sought police protection. The individual was later recognized as an investor who lost around $2 million in LUNA’s collapse, according to media reports.

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