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US, South Korea to cooperate over Terra investigation
South Korea and the United States have agreed to share investigation data about the Terra network crash.
1 min read
Updated: Jul. 6, 2022 at 5:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
U.S. and South Korean authorities have agreed to collaborate on the investigation of Terra’s implosion, South Korea’s Yonhap News Agency reported July 6.
South Korea’s Justice Minister Han Dong-hoon met with Andrea Griswold, co-chief of the Securities and Commodities Task Force, and Scott Hartman, chief of the Securities and Commodities Fraud Task Force, at the U.S. Attorney’s Office for the Southern District of New York.
Yonhap News Agency added that the two countries agreed to share investigation data about the Terra (LUNA) network crash, which led to about $40 billion in losses.
South Korea is investigating the possibility of fraud, tax evasion, and market manipulation on the part of Terraform Labs, while the US is probing Do Kwon and whether TerraUSD breached certain regulations.
More regulation
Meanwhile, Terra’s crash has birthed new crypto regulation efforts in several countries. South Korea has formed a new crypto committee to assess the crypto projects listed on crypto exchanges.
In the US, there are reports that the government is working with Congress to formulate new stablecoin legislation that could come into effect before the end of this year.
The United Kingdom government proposed several legislative amendments for crypto firms, including stablecoin issuers. Singapore’s financial regulator is considering new blanket regulations to protect retail investors.
Meanwhile, the EU’s Markets in Crypto-Assets (MiCA) framework seeks to impose redemption reserve requirements on stablecoins to cover withdrawals as well as a threshold for the daily transactions for the largest operators.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
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.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.