- South Korea’s Ministry of Justice banned the officials of Terra from leaving the country.
- Do Kwon is issued notice to enter the country, who now lives in Singapore.
- The fall of UST initiated the bearish rally of the crypto market.
Following the Crashdown of Terra(LUNA), the entire market dipped down depicting blood red for almost two months. However, a case was filed against the officials of Terra for the fraud-related activities to the collapse of Terra stablecoin and LUNA. After a long-week investigation, South Korean prosecutors have issued notice to Do Kwon, CEO of Terraform Labs to enter the country. While other officials of the company have been banned from leaving the country.
According to Korean media donga, South Korea’s Ministry of Justice approved a ban on multiple Terra managers from leaving the country and required notification of entry to Do Kwon, who now lives in Singapore. https://t.co/AIvX3rBjq0
— Wu Blockchain (@WuBlockchain) July 27, 2022
The Ministry of Justice prohibits the co-founder of Terraform Labs, Shin Hyun-Seong, former vice president Kim Mo, and other current and former officials from leaving the country. The investigation began last week by detaining and examining 15 places including Chairman Shin’s house. Additionally, the leading cryptocurrency exchanges are Upbit and Bithumb and Terraform Labs subsidiaries. Consequently, there are multiple lawsuits against Terraform Labs and its founder Do Kwon.
Terra Fails To Keep-Up Its Promise
According to the Korean Media Donga, Do Kwon is currently living in Singapore and he is obliged to enter the country for further investigations. Moreover, the prosecutors have already inspected the transaction history of Do Kwon and other officials of Terraform Labs. Significantly, the firm has been imprisoned from just about every perspective while additional allegations are made against the company.
A U.S law firm, Bragar Eagel & Squire, files a lawsuit on behalf of investors who bought securities from TerraForm Labs Ptd. Ltd., Solana Labs, Inc., and Celsius Network LLC. The law firm also tangled the respective co-defendant firms into the lawsuit.
However, the statement claims that Terraform Labs defrauded the investors and made to purchase LUNA by faking the inflated price. The firm approved the false representations even after knowing or deliberately should have known that it was intentionally deceptive.
In fact, the deep fall of UST was the foremost trap for the entire market to experience a bearish-rally. The price of UST fell to $0.07 on May 25, 2022, from $1.00, and it has not risen since. Between May 7, 2022, and May 12, 2022, the prices of UST and LUNA tokens fell by 91% and 99.7%, respectively, still unable to recover.
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