Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets – Featured Bitcoin News

South Korean police are reportedly investigating possible embezzlement in relation to an employee at Terraform Labs. To prevent fund transfers, the police have requested crypto exchanges to freeze the Luna Foundation Guard’s accounts.

Asset Freeze and Investigation of Embezzlement

The Seoul Metropolitan Police Agency’s Cybercrime ​​Investigation Unit announced Monday that it has launched an investigation into possible embezzlement by an employee of Terraform Labs, local media reported.

Chosun quoted a Seoul Metropolitan Police Agency official as saying:

Information has come to us that a Terraform Labs employee is suspected of embezzling company funds.

In the middle of May, police were notified of the suspected embezzlement and are investigating. The police will investigate the allegations of embezzlement by Terraform Labs (LFG) and Luna Foundation Guards (LFG) and examine the cash and crypto transactions.

The police explained that there is evidence that embezzled funds had flowed into the Luna Foundation Guard’s accounts. The cybercrime unit has therefore requested major domestic cryptocurrency exchanges, such as Upbit and Bithumb, to “urgently” freeze the accounts belonging to the Luna Foundation Guard to prevent withdrawals of funds held at crypto exchanges.

However, the police’s freeze request is not a compulsory matter according to Korean laws and regulations but a matter that needs to be arbitrarily performed by each crypto exchange. The publication has been published, but it isn’t known whether or not the freeze request was fulfilled.

Stablecoin terrausd and cryptocurrency terra were both destroyed earlier this month, after UST lost their peg with the U.S. Dollar.

Following the collapse, the Korean government launched an emergency investigation into the two coins and met with representatives of the country’s top crypto exchanges to discuss measures to prevent similar incidents from happening.

Kwon Dohyung, aka Do Kwon, Terraform Labs CEO was charged with violating the Act on the Agravated Punishment of Specific Economic Crimes.

Do Kwon disintegrated Terraform Labs Korea in the days preceding the collapses of LUNA/UST. While many suspected foul play, Kwon claimed that the timing was just “coincidental.” He also claims that his company does not owe the Korean government any taxes.

How do you feel about the case? Comment below to let us know your thoughts.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.