The US and South Korean governments have agreed to investigate the collapse of the former top 10 crypto project Terra (LUNA) for potential economic fraud.
According to the new report South Korean Justice Minister Han Dan-hoon met with a US prosecutor in New York this week to discuss investigations and other crypto-related enforcement measures, according to local South Korean media Yonhap News Agency.
The meeting was reportedly attended by Andrea M. Griswold, Co-Chief of the Securities and Commodities Task Force of the United States Attorney for the Southern District of New York, and Scott Hartman, Chief of the Securities and Commodities Task Force. did. office.
Terra’s algorithmic stablecoin UST and its underlying crypto asset, LUNA, both crashed to essentially zero after the redemption system flaw disappeared in May.
In addition to this case, the two authorities reportedly discussed ways to strengthen mutual cooperation and communication to prevent securities fraud and financial crimes.
According to the report, South Korean prosecutors are investigating fraud charges surrounding UST, and the US Securities and Exchange Commission (SEC) is investigating DoKwon, the founder of Terraform Labs. Specifically, the SEC is investigating whether pre-collapse UST marketing violates investor protection regulations.
Yonhap News Agency reported that just over a week after the collapse of Terra’s ecosystem, South Korean authorities are investigating potential criminal charges against Dokwon for running the Ponzi scheme. Kwon and his fellow terraform lab co-founder Daniel Singh are also reportedly sued by five investors who claim to have lost $ 1.1 million on suspicion of fraud committed by a crypto project.
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