The governments of the US and South Korea have agreed to research the collapse of former top-10 crypto challenge Terra (LUNA) for potential monetary misdoings.
In accordance with a brand new report by native Korean media outlet Yonhap Information, the nation’s justice minister Han Dang-hoon met with US prosecutors in New York this week to debate the investigation and different crypto-related enforcement actions.
Reportedly current on the assembly was Andrea M. Griswold, co-chief of the Securities and Commodities Process Drive on the U.S. Lawyer’s Workplace for the Southern District of New York, and Scott Hartman, chief of the Securities and Commodities Fraud Process Drive of the identical workplace.
Terra’s algorithmic stablecoin UST, and LUNA, the crypto asset backing it, each crashed to primarily zero after flaws in its redemption system led to its demise in Might.
The 2 international locations’ authorities reportedly mentioned the incident, plus methods to bolster cooperation and communication between one another to stop securities fraud and monetary crimes.
The report says that South Korean prosecutors are wanting into fraud costs surrounding UST, whereas the U.S. Securities and Alternate Fee (SEC) is investigating Terraform Labs founder Do Kwon. Particularly, the SEC is wanting into whether or not the advertising of UST earlier than its collapse violated investor-protection laws.
Simply over per week after the collapse of the Terra ecosystem, Yonhap Information reported that Korean authorities had been wanting into potential felony costs towards Do Kwon for allegedly working a Ponzi scheme. Kwon and fellow Terraform Labs co-founder Daniel Shin had been additionally reportedly being sued by 5 traders who declare to have misplaced $1.1 million as a consequence of alleged fraud dedicated by the crypto challenge.
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