South Korea and U.S. Officials Collaborate to Investigate Terra Collapse - TheNewsCrypto
- Several regulatory authorities from across the globe launched official investigations.
- Know Your Customer and Anti-Money Laundering rules are demanded.
Several charges were brought against Terraform Labs and its co-founder, Do Kwon, after the collapse of the Terra ecosystem in May. As a result of the scandal, several regulatory authorities from across the globe launched official investigations.
Korean Justice Minister Han Dong-hoon met with U.S. prosecutors in New York to examine measures to increase collaboration in investigations of financial crimes using cryptos.
Increased Information Sharing and Collaboration
At the Southern District of New York U.S. Attorney’s Office, Han and Andrea M. Griswold, co-chiefs of the Securities and Commodities Task Force, met with Scott Hartman, chief of the Securities and Commodities Fraud Task Force, on Tuesday, according to the Yonhap News Agency.
During the discussion, they discussed measures to increase information sharing and collaboration between the Seoul Southern District Prosecutor’s Office and the Southern District of New York’s office in the fight against securities fraud and financial crimes. One of their initial agreements was to work together to share Terra’s investigation data.
According to Yonhap News Agency:
“The two sides also agreed to share their latest investigation data on ongoing crypto cases, including the high-profile case surrounding the meltdown of stablecoin TerraUSD and its digital coin counterpart, Luna.”
The country is investigating allegations of cryptocurrency token fraud. On the other hand, the SEC is looking into whether Do Kwon’s promotion of UST before its demise violated requirements for investor protection.
South Korea, on the other hand, enforces a rigorous set of crypto rules. Know Your Customer and Anti-Money Laundering rules are demanded of investors in the area. Reaching the depths of Terra with the assistance of the United States only serves to demonstrate the country’s adamant opposition to infringements.
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