Wednesday, September 28, 2022

South Korean Police Department Requests LFG Accounts be Frozen.

The Police Department of South Korea has requested that cryptocurrency exchanges should freeze all accounts of Luna Foundation Guard (LFG). The move is in compliance with suspicions that the Terra sponsor may have embezzled some of the funds. Which saw the crash of its stablecoins in past weeks.

LFG Indicted?

According to reports on Naver News, as the Police Department continues its investigation into the events around the fall of the Terra and its associated coin, UST and LUNA. Evidence suggests that LFG may have profited off the crash.

The report however pointed out that the request of the law enforcement department to crypto exchanges is not an enforced law yet. It is simply a strategy to take precautions while concrete proofs of the new claims are being gathered.

This puts the cryptocurrency exchanges in a position where they either take the bait of the new claims or just drop it.

Terra Network is Believed to Have Been Shady

The unprecedented crash that hit the Terra Network in the past weeks has caused a significant loss for its investors. No one, including the government, seems to accept that the fall was without cause.

The South Korean government institutions have all been working together. They have been turning their radar on the firm and all crypto exchanges, seeking answers.

A special investigation team of the government was revived by the South Korean Minister of Justice, Dong-Hoon Han to make findings into the Terra Network crash. The group, “Yeouido Grim Reaper” is currently working to clear all suspicions and produce infallible proofs about the LFG sponsored coins.

A non-governmental team has also been created, confirmed to be an amalgamation of investors affected by the crash. They are currently seeking to ensure that the co-founder of the Terra Network, Do Kwon is held responsible for the bullish fall of the UST and LUNA coins through defined lawsuits.

The upper legislative arm of the South Korean government has also amended some of its policies. The new laws suggest stricter measures on how the country’s crypto ecosystem is to be governed.

While no evidence is yet to prove that Do Kwon and his Terra Network are indicted in the crash of his stablecoins. investigations continue.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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