South Korea blocks network developers from leaving the country – Money Times

The company behind Earth and the CEO, Do Kwon, are already the target of further investigations. (Image: YouTube/Earth)

prosecutors in the South Korea prevented developers and former developers from the network Earth (MOON) leave the country as investigations into the collapse of the project continue.

According to the local newspaper JTBC Newsthe Joint Financial and Securities Crimes Investigation Team said the travel embargo was aimed at preventing those involved in the case from leaving the country.

The decision may also be in preparation for other investigative actions, such as search and seizure, as well as subpoenas for others involved.

A former developer of Earth, Daniel Hong, said on Twitter that developers, like him, had not been informed of the travel embargo. “To be honest, people being treated as potential criminals in this way is absolutely disgusting and unacceptable,” he said.

The company behind EarthTerraform Labs, eo CEO and creator of the network, Do Kwonare already the subject of several ongoing investigations and proceedings in different jurisdictions, both in South Korea and abroad.

These regulatory problems stem from the implosion of cryptocurrencies of EarthLUNA and the stablecoin TerraUSD (UST) in early May.

Terraform Labs is also being investigated by a possibility of tax evasion of $78 million in South Korea. Do Kwon previously replied that the company does not have significant tax dependencies in the country.

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Earth can be studied in the United States

Earlier this month, Terraform Labs lost to the United States Securities and Exchange Commission (SEC, an American GVC) do not run on the mirror protocol.

On June 9, the Second Circuit Court denied Terraform Labs’ appeal against the SEC.

The company’s defeat behind Earth as the US regulator opens the door to ramifications for further legal action by the authorities of the United States and for collective citizen action, including on cryptocurrencies of Earth.

Always at the beginning of the month, JBTC News reported that the SEC was investigating some of the UST executives, as well as suspicions of money laundering by Do Kwon.

Quoting an unnamed source, Matt Robinson of Bloombergalso wrote that the SEC had launched an investigation into the implosion of the UST stablecoin.

“I fail to see how the SEC or the CFTC could not investigate the ashes of UST and LUNA, as well as other stablecoins and their issuers,” wrote former SEC attorney Philip Moustakis. “Actually, I would expect some coordination between agencies in this regard.”

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O money time publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

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