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Market News South Korea Bans Terra Employees’ Exit From Country Amid Investigation

South Korea Bans Terra Employees’ Exit From Country Amid Investigation

Apart from the depegging of the TerraUSD stablecoin, the Terraform Labs has been investigated by South Korean authorities for tax fraud.

Cory Russell
2022-06-21
817

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Terra from Terraform Labs will undoubtedly go down in crypto history as one of the worst disasters.


Not only did it cause massive losses to investors without being a rug pull, but the firm behind it was also targeted by authorities.

South Korea (South Korea) Terra's successor

The ongoing inquiry of Terraform Labs and its personnel in connection with the collapse of Terra (Now Terra Classic, LUNC) has begun to affect those who were, in many respects, uninformed of the company's operations.


The Seoul Southern District Prosecutor's Office has sought for an absolute travel restriction on key personnel who were essential to the creation of Terra, and a former employee/developer recently publicized his predicament to the world.


The same was brought to light by a local media source, JBTC, which stated in a report that the travel ban was imposed to prevent either of the company's workers from fleeing the country or destroying evidence.


Not only that, but as part of their investigation, the country's authorities may decide to revoke CEO Do Kwon's passport.

Terra's Long-Term Future

While the corporation tackles with one issue, another one is brewing in the crypto market, with the recently launched Terra LUNA 2.0 falling again.


The coin dropped and sank from a high of $19.53 to $4.05. shortly after its inception. At the time of writing, the cryptocurrency is trading at $2.01. In just 20 days, the market has lost 89.7% of its value.


However, the pessimism that accompanied LUNA's debut, as well as the overall market's bearish plunge, has left it rangebound, and it may take some time to recover from current lows.

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