South Korean authorities oblige Terraform directorate to notify about entry and exit from the country

The Seoul Southern District Prosecutor’s Office, as part of an investigation into the default of the UST stablecoin, ordered former and current heads of Terraform Labs to notify the arrival and departure from South Korea.

The Joint Financial Crime Investigation Team of the Seoul Southern District Prosecutor’s Office, which is investigating the Terraform Labs fraud case, notified the company’s CEO Do Kwon and co-founder Shin Hyun-Seong to present a “notification upon arrival” upon entering country. The notification is a form of document that must be completed and submitted to the relevant authorities upon entry into the country. The same rule should apply when leaving.

It is known that while Do Kwon was with Chairman Shin and former Vice President Kim Mo in Singapore, the prosecution issued a travel ban notice against all former and current Terraform Labs executives, including Do Kwon, Shin Hyun Sung, and the former Vice President. Kim Mo. Prosecutors reportedly ransacked Shin’s residence last week.

The travel restrictions followed the launch of a global investigation into Terraform Labs, whose algorithmic stablecoin TerraUSD (UST) collapsed, wiping out $40 billion of investor wealth. The investigation began in May after UST abruptly lost its peg to the US dollar. UST and Luna fell 91% and 99.7%, respectively, between May 7 and 12 and never recovered. Recently, seven other crypto exchanges in South Korea were investigated for links to Terraform. Transaction records and other documents were seized from the offices of Upbit, Bithumb and Coinone. In addition, Terraform and a number of other companies, including Three Arrows Capital, are facing a class-action lawsuit in the United States, where crypto companies are accused of leading retail investors acquiring Terra tokens at inflated prices.