South Korean Authorities Imposes Travel Ban on Terra Developers


As investigations into the Terra-Luna crash continue, authorities have barred developers of the embattled project from leaving South Korea. This latest development which affects key members of the project was reported by local media JTBC today. 

The Seoul Southern District Prosecutor’s office imposed the restrictions on travel, a move done in collaboration with the Joint Financial and Securities Crime Team.

While it’s unclear if the affected individuals were trying to flee the country, the move suggests the agency is planning to carry out a search and seizure. It could also issue subpoenas to concerned individuals in the case.

One of the affected developers, Daniel Hong registered his displeasure with the move on Twitter, noting that the authorities are treating former Terraform developers as criminals.

Hong further described the move as unacceptable and outrageous. He said it might cause a change of heart for employees willing to cooperate with the investigations.

Terra’s CEO Still in Singapore

The embargo is aimed at stopping members of the Terra team from suddenly traveling abroad to stall the ongoing investigation. Meanwhile, CEO, Do Kwon has moved to Singapore amidst this chaos.

Kwon had earlier clarified that the decision to move to Singapore was unrelated to the Luna crash. He said it had more to do with the nation’s zero crypto taxes and its affordable cost of living.

Do Kwon together with Terraform Labs has also been accused of tax evasion. South Korea’s tax watchdog said he evaded tax of about $78 million. But the Terra founder vehemently denies this, adding that he has paid all tax liabilities in full.

The prosecution team is also reviewing the legality of charging Do Kwon and other members with fraud and other violations. As Do Kwon still resides in Singapore, investigations into key members of his project particularly its CEO will take a while.

Do Kwon and Terraform Labs have been subjects of numerous lawsuits both in and out of South Korea. All of these investigations and lawsuits resulted from the crash of Luna and the TerraUSD (UST) stablecoin.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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