South Korean prosecutors have banned Terra employees from leaving the country 🚨 This article is 3 years old...
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South Korean prosecutors have banned Terra employees from leaving the country
Terraform Labs employees are banned from leaving South Korea as the prosecutors office explores charging Do Kwon with fraud and other crimes.
1 min read
Updated: Jun. 21, 2022 at 3:13 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
South Korea’s prosecutor’s office has restricted key employees of Terraform Labs from leaving the country, according to a report by local media outlet JTBC on June 20.
The travel ban has been imposed to prevent Terra employees from fleeing the country to avoid investigation, according to JTBC.
The Seoul Southern District Prosecutor’s Office levied the departure ban in connection with the ongoing investigation against Terraform Labs for its role in the collapse of TerraUSD(UST).
JTBC reported that Terra founder and CEO Do Kwon is currently residing in Singapore. Therefore, the prosecutor’s office is looking to invalidate Kwon’s passport before further investigation. The prosecutors are also exploring whether Kwon and other Terra employees can be charged with crimes such as fraud.
The travel ban encompasses even former employees of Terra, as pointed out by Daniel Hong, a former developer at Terra.
stop asking me why i couldn't make it to NYC frens, this is why: the Korean government imposed an exit ban for all ex-@terra_money employees today pic.twitter.com/5Jds99ZNwQ
— Daniel Hong 🪄 (@unifiedh) June 20, 2022
In the short Twitter thread, Hong went on to say that he and other employees were not notified about the ban. When Hong contacted the prosecutor’s office, he was informed that such bans are not announced to prevent investigation targets from destroying evidence.
Hong said that being treated as “potential criminals” is “absolutely outrageous and unacceptable.” He added that the travel ban might lead some employees to change their minds about cooperating with the authorities.
South Korean authorities launched investigations into Terraform Labs and its employees after the collapse of UST and its sister token LUNA, which left over 200,000 Koreans affected.
In addition, South Korea’s top crypto exchanges have agreed to form a consultative body to ensure stringent coin listing rules and avoid a repeat of the Terra-LUNA fiasco.
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
TerraClassicUSD
$0.02113
TerraUSD (UST) is a decentralized and algorithmic stablecoin on the Terra blockchain.
Terra
$0.43731
Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.