The governments of the United States and South Korea have agreed to investigate the collapse of former top-10 crypto project Terra (LUNA) for potential financial misdoings.
According to a new report by local Korean media outlet Yonhap News, the country’s justice minister Han Dang-hoon met with US prosecutors in New York this week to discuss the investigation and other crypto-related enforcement actions.
[adinserter block="1"]Reportedly present at the meeting was Andrea M. Griswold, co-chief of the Securities and Commodities Task Force at the U.S. Attorney’s Office for the Southern District of New York, and Scott Hartman, chief of the Securities and Commodities Fraud Task Force of the same office.
Terra’s algorithmic stablecoin UST, and LUNA, the crypto asset backing it, both crashed to essentially zero after flaws in its redemption system led to its demise in May.
The two countries’ authorities reportedly discussed the incident, plus ways to bolster cooperation and communication between each other to prevent securities fraud and financial crimes.
The report says that South Korean prosecutors are looking into fraud charges surrounding UST, while the U.S. Securities and Exchange Commission (SEC) is investigating Terraform Labs founder Do Kwon. Specifically, the SEC is looking into whether the marketing of UST before its collapse violated investor-protection regulations.
Just over a week after the collapse of the Terra ecosystem, Yonhap News reported that Korean authorities were looking into potential criminal charges against Do Kwon for allegedly operating a Ponzi scheme. Kwon and fellow Terraform Labs co-founder Daniel Shin were also reportedly being sued by five investors who claim to have lost $1.1 million due to alleged fraud committed by the crypto project.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Design Projects/WindAwake
