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Trouble For Do Kwon? Korea To Share Data On Terra Crash With U.S


coingape.com 06 July 2022 09:43, UTC
Reading time: ~2 m

The recent collapse of Terra LUNA has left a huge dent in the global cryptocurrency market. However, this fall has raised suspicions of fraud and manipulation among the regulator of different nations.

Korea-US officials talk over Terra data

As per reports, the Minister of Justice of South Korea Han Dong-hoon met U.S. prosecution officials. The meeting involved a discussion over cooperation in the investigation of financial crimes. This particularly noted crime is related to cryptocurrency.

Both officials discussed strengthening the cooperation in information exchange. Seoul Southern District Prosecutors Office and the Southern District of New York office agreed to work together in fighting against financial fraud and crimes.

In a big development, the agreement mentioned sharing the data of ongoing crypto related cases. This includes the recent high profile case of Terra USD and LUNA. The report mentioned that Korean prosecutors are investing in the possible fraud charges against TerraUSD and Luna.

However, the US SEC is already investigating Do Kwon over the marketing of its stablecoin TerraUST before its crash. It is looking into violations of investor protection regulations. While it also involves the charges of alleged money laundering activities.

Korean Blockchain Association files for dissolution

Meanwhile,  A lawsuit filed in the US District Court in Northern California. It alleged that South Korea based Terra form Labs and its head Do Kwon violated federal securities laws by selling and promoting UST and LUNA.

According to a report, the Korean Blockchain Association will be dissolving this month. This major development has landed amid the increasing conflict with its virtual asset exchange members. It mentions that the association failed to speak up on some recent major issues.

The blockchain association will be holding a board meeting on July 7, 2022. The agenda of the meeting will be focused on the proper “dissolution”. If this gets approval from the board, the general meeting will be held on July 21 to make the final decision.

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