The Republic of Korea (South Korea) has banned current and former employees of Terraform Labs, the management company of the recently collapsed stablecoin TerraUSD, from leaving the country, as the pace of the investigation into the case intensifies.
A Seoul prosecutor’s office confirmed to Bloomberg that “officials linked to the collapse of stablecoin” have been subject to travel restrictions, but declined to say how many people were involved or what offenses were being investigated.
“A travel ban is usually imposed in order for suspects to be available for questioning,” a Bloomberg source said.
Yonhap reported that 15 people, including developers of the Anchor Lending Protocol, were subject to the restrictions, citing “legal sources”.
The moves by the South Korean authorities come just over a month after the “blast” of the stablecoin algorithm TerraUSD. About $ 40 billion in capitalization went up in smoke as TerraUDS and cryptocurrency brother Luna collapsed after stablecoin fell below $ 1, which was supposed to be stable. Research on the subject is also conducted in the USA.
The news was confirmed by the former Terraform developer, Daniel Hong, who explained that he can not attend an event in the US due to the ban.
Prosecutors have launched a process to cancel the passport of Terraform Labs co-founder Do Kwon, the YTN network reported earlier on Tuesday. If that happens, Kwon, who is believed to be living in Singapore, will have to return to the country to hand in his passport within 14 days.
Source: Capital
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