Terra Saga Continues: South Korean Authorities Request To Freeze Assets Of Luna Foundation Guard

KEY POINTS

South Korean authorities are currently investigating LFG
Authorities discovered clues about a potential embezzlement
Bulk of investigation handed over to The Grim Reaper team

After the meteoric crash of Terra's LUNA and algorithmic stablecoin UST that wiped out billions of dollars of investment, the South Korean police have requested major cryptocurrency exchange platforms in the country to freeze the assets of Luna Foundation Guard (LFG), the non-profit organization that supports the Terra ecosystem to prevent funds from being withdrawn.

The Seoul Metropolitan Police Agency specifically asked major crypto platforms to restrict LFG from taking any action as recently uncovered clues have hinted at the potential embezzlement of funds linked to the organization, a report said. The police agency's request, however, is not a demand and not enforceable by law, leaving the matter on the discretion of the crypto exchange platforms.

Apart from that, Korean legislators are scheduled to hold a meeting with representatives of five major crypto exchanges in the country in relation to the Terra collapse. This includes companies like Coinone, Gopax, Upbit, Bithumb and Korbit.

The investigation will most likely look into the possible involvement of these platforms in the loss of funds of Terra investors. "We will request a quality investor protection policy to be implemented amongst exchanges," said People Power Party's Virtual Assets Special Committee chairman Yoon Chang-hyeon.

South Korean authorities are determined to get to the bottom of Terra's crash, including involvement of Terraform Labs and its CEO and founder Do Kwon. To prove its commitment, authorities handed over the investigation to The Grim Reapers, the South Korean special investigative and prosecutorial team.

The National Tax Service (NTS) is also levying an additional 100 billion won (around $78 million) penalty on Kwon and Terraform Labs for tax evasion, which according to Kwon is not true since Terraform Labs has no outstanding tax liabilities in the country. He even hit back at the government and said that it "needed money to shore up Covid spending, creatively charged millions from crypto companies, and we paid our share in full — all there is to it."

Understand why this would be interesting to look at for gossip but not sure if its relevant to anything thats going on

Korean govt needed money to shore up covid spending, creatively charged millions from crypto companies, and we paid our share in full - all there is to it
— Do Kwon 🌕 (@stablekwon) May 21, 2022