South Korea and the United States will jointly investigate the collapse of the Terra project

Law enforcement and regulators in the United States of America and South Korea have agreed to share information about cases related to the crypto industry, and especially about the situation with Terra-LUNA.

South Korean Minister of Justice Han Dong-hoon visited New York to discuss the prospects for cooperation in investigations related to financial crimes and especially crimes related to digital assets. Hong spoke with Andrea M. Griswold, co-leader of the Securities and Commodities Group at the U.S. Attorney’s Office for the Southern District of New York, and Scott Hartman, head of the Securities and Commodities Fraud Group at the same office.

Officials discussed ways to share information and ensure timely action regarding the increasing number of crimes involving securities and the digital asset market. As an experiment, the parties will unite to help each other find the causes of the collapse of the Terra-LUNA crypto project.

Recall that the Terraform Labs ecosystem was estimated at 40 billion, but collapsed in just three days. The US recently launched an investigation into the company’s co-founder, Do Kwon.

Crimes related to cryptocurrencies have become the focus of attention of regulatory authorities in different countries. South Korea is now considered one of the most strict in terms of regulation in countries, as local authorities carefully monitor the implementation of the KYC procedure, which requires a crypto company to identify users, and AML rules aimed at combating money laundering.

Earlier, the South Korean authorities decided to form a digital assets committee by the end of June, which would be responsible for protecting cryptocurrency investors. The decision was made just amid the death of Terraform Labs.