Prosecutors Impose Travel Bans on Former Terraform Labs Employees Amid Luna Crash

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the collapse of the Korean virtual asset Luna (LUNC) has imposed travel bans on multiple officials from Terraform Labs, the coin issuer.

According to the legal community on the 22nd, the Joint Investigation Team for Financial and Securities Crimes at the Seoul Southern District Prosecutors' Office recently imposed travel bans for about a month on former employees who worked at Terraform Labs. Approximately 15 people have been banned from traveling abroad, including developers who participated in the project during its early stages and were not directly involved in the recent collapse.

According to the Immigration Control Act, the Minister of Justice can prohibit travel abroad for up to one month for individuals deemed inappropriate to leave the country for criminal investigations. The prosecution judged that there was a possibility of employees leaving the country after circumstances revealed that CEO Kwon had effectively fled overseas.

The prosecution plans to summon the former employees under travel bans to investigate the development process of the algorithmic stablecoin operating Terra-Luna and the DeFi (decentralized finance) service "Anchor Protocol" within the Terra ecosystem, which is suspected of being a "Ponzi scheme (multi-level financial fraud)."

If the prosecution determines that CEO Kwon Do-hyung of Terraform Labs is guilty of fraud during this process, they may initiate compulsory investigations such as invalidating his passport to summon him back to Korea or conducting a search and seizure of the domestic office suspected to be his nominee company.

It is known that CEO Kwon has been residing in Singapore since last year.

This content was produced with the assistance of AI translation services.