TL; DR Breakdown
With the Terrapin saga, the crypto community is keeping a wary eye on LUNA to see how things play out for Terraform Labs and the long list of those named in the indictment. Prosecutors in South Korea have imposed a travel ban on former Terra developers as part of their efforts to keep them from fleeing the country while investigations continue.
On Monday, June 20th, the District Prosecutor’s Office’S Joint Financial and Securities Crime Investigation Team announced the travel ban.
The travel ban is the most recent step in a long-standing criminal inquiry into Terraform Labs, the firm behind the stable coin initiative. However, Do Kwon, CEO of Terraform Labs, is now living in Singapore and making it difficult for investigators to conduct their work, For this reason, his passport may end up being abolished
Source: Coinmarketcap
Daniel Hong, a former Terra developer, vented his anger through a tweet in which he stated that developers like him and other employees who left the firm in 2019/2020 are not supposed to be held responsible and treated as criminals, causing them to be delayed by the travel ban.
Other than Terraform Labs, the travel ban also affects other companies in the space such as Tether, Blockstream, and ShapeShift. Despite the crypto community’s anger over the situation, it is unlikely that the travel ban will be lifted any time soon.
The news of the travel ban comes as a shock to the crypto community because it is not often that such a thing happens. It is even more surprising given that most of the people named in the indictment have already left the country. This just goes to show that the South Korean government is serious about its investigation into the matter.
The bankruptcy of Terraform Labs has been a source of international concern. South Korean authorities are demanding the payment of approximately $80 million in tax evasion fines, according to media reports. According to Kwon, the company had no outstanding tax obligations in South Korea.
The court said at the time that it would be difficult for the company to continue operating with its current management team in place and that a change was needed to protect the interests of investors.
The travel ban will make it difficult for the defendants to flee the country and will also prevent them from tampering with evidence or otherwise interfering with the investigation. It is not clear how long the ban will remain in place.
The Terra scandal has shaken the crypto community and raised questions about the viability of stable coins. The project was one of the most highly anticipated in space, and its collapse has been a major setback for those who believe in the power of digital currencies.
The South Korean government has been cracking down on cryptocurrency projects in recent months, and the Terra investigation is just one part of that effort. Earlier this year, the country’s financial watchdog launched an investigation into another stable coin project, called G-Coin, which is backed by Goldman Sachs.
The Terra case is still in its early stages, and it remains to be seen how it will ultimately impact the crypto community. For now, though, the travel ban is a reminder that the South Korean government is taking a hard line on cryptocurrency projects.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up