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Terra: South Korean Prosecutors Issue Notice Upon Arrival to Do Kwon

Wed, 07/27/2022 - 12:06
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Tomiwabold Olajide
South Korean investigators request notification of entry
Terra: South Korean Prosecutors Issue Notice Upon Arrival to Do Kwon
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South Korean prosecutors, who are investigating allegations of fraud related to the collapse of Terra and Luna, have issued a "notice upon arrival" to Terraform Labs CEO Do Kwon, who is said to be staying in Singapore currently, according to Korean news website Donga.

The Ministry of Justice granted the request to prohibit Terra co-founder Shin Hyun-Seong, former Vice President Kim Mo of Terraform Labs and other current and former officials of the company from leaving the country.

The prosecution launched a thorough investigation last week by seizing and searching a total of 15 locations, including the top cryptocurrency exchanges, Upbit and Bithumb, Terraform Labs affiliates and Chairman Shin's residence. Dunamu & Partners, which made an initial investment in Terraform Labs, were also included among the search and seizure targets.

Additionally, Donga reports that prosecutors examined the cryptocurrency transactions of former and present Terraform Labs executives, including CEO Do Kwon.

The prosecution intends to contact Terraform Labs and staff members of associated companies, in turn, to conduct an investigation as soon as the examination of the confiscated items is complete.

U.S. law firm slaps Terra with lawsuit

Bragar Eagel & Squire, P.C., a U.S. law firm, has filed a class action on behalf of people who purchased securities from TerraForm Labs Ptd. Ltd., Solana Labs, Inc., and Celsius Network LLC, and the companies' respective co-defendants.

It cites, "On May 25, 2022, the price of the UST hit a low of $0.07 per token, down from $1.00, which it has not been able to recover. The price of UST and LUNA tokens dropped by 91% and 99.7%, respectively, between May 7, 2022, and May 12, 2022, and has not recovered."

It therefore alleges that "TFL intended to and did deceive retail investors and thereby caused them to purchase Terra Tokens at artificially inflated prices and it also endorsed false statements they knew or recklessly should have known were materially misleading," among other things, which were spelled out in a release.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.