South Korea Launches ‘Emergency’ Investigation Into Collapse of LUNA and UST – Regulation Bitcoin News

South Korea’s top financial regulators have launched an emergency investigation into the collapse of cryptocurrency LUNA and stablecoin UST. They have asked local cryptocurrency exchanges for information about investors and transactions of these two coins.

South Korea’s Emergency Investigation Into LUNA, UST

South Korea has launched an “emergency” investigation of domestic crypto exchange operators following the collapse of the terrausd stablecoin (UST) and terra (LUNA) cryptocurrency, Yonhap News reported Tuesday, citing unnamed sources.

Last week, UST lost the peg it had to the U.S. Dollar, sending both UST and terra’s prices into free fall. LUNA has a near-immeasurable value, while UST trades at $0.09 as of the writing.

Sources told The News Outlet that the Financial Supervisor Service (FSS) and Financial Services Commission (FSC), South Korea’s top financial regulators have requested information from local cryptocurrency exchange operators about UST and LUNA.

According to a source, a representative of the local crypto exchange operator said:

Last week, financial authorities asked for data on the amount of transactions and investors, and sized up the exchanges’ relevant measures.

“I think they did it to draw up measures to minimize the damage to investors in the future,” the exchange official said.

According to the publication, authorities requested data such as trading volumes and closing price information. They also wanted to know the countermeasures taken by exchange operators in response to recent crashes and the causes of those collapses.

Kwon Dohyung, also known as Do Kwon, was a South Korean national who invented UST (and LUNA). Terraform Labs, his company, has been incorporated in Singapore. Kwon had a couple of ideas to help revive coins after the crash of two cryptocurrency. However, none have worked.

Kwon’s wife reportedly sought police protection after an unidentified man trespassed into their apartment building in South Korea. According to media reports, the man was subsequently identified as an investor who lost roughly $2 million in LUNA’s collapse.

Do you agree with South Korea launching an inquiry into UST or LUNA following the collapse of both cryptocurrencies? Comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.