The Korean police are attempting to freeze assets associated with the indicted Luna Foundation guard
Luna Foundation Guard’s money is reportedly being frozen by South Korean authorities after last month’s unprecedented collapse of the Terra network’s LUNA and UST tokens.
According to KBS, South Korean authorities on Monday requested that exchanges operating in South Korea prevent the withdrawal of the allegedly embezzled monies by the Luna Foundation Guard (LFG). Exchanges were ordered by the Seoul Metropolitan Police Agency to withhold assets from the Terra-affiliated non-profit.
It’s not clear which local swaps were requested. Furthermore, a request to freeze the money is not enforceable by law. Meaning that each conversation will determine whether it is in accordance with the police’s demand.
Luna Foundation Guard and Terra’s Do Kwon have been involved in a long-running feud for some time now.
Continuation of Terra’s Saga
After a slow start on May 8, Terra’s algorithmic stablecoin UST began deviating from its planned parity with the US dollar. Despite Terraform Labs and the LFG’s efforts to halt the collapse, UST continued to fall in the following days. Due to the collapse of the UST, LUNA, formerly top-ten crypto by market value, dropped to 0 percent in value overnight.
As a result of the collapse, investors have incurred significant losses and are beginning to question the management’s conduct after the unpegging of the UST. Terra founder Do Kwon has been the subject of a slew of legal and criminal cases, suggesting that many people believe he committed fraud.
It was just announced last week that the Korean government was looking into Kwon and Terraform Labs for unpaid corporation taxes totalling more than $78,000,000.00. The Korean tax authorities, on the other hand, claim that Kwon has no tax obligations there. He has recently said that he doesn’t care what happens to him in Korea or Singapore as long as he can provide the Terra community with a space to grow.
During this week, five of Korea’s largest exchanges — including Gopax and Upbit — will be meeting with lawmakers to clarify whether they adequately protected clients from the Terra collapse problem.
According to Kwon, a new blockchain sans the UST stablecoin should be created by forking the LUNA chain. As of the time of publishing, 65.78 percent of voters approved the measure. It’s possible that the new network might go live as early as May 27 if the vote closes on Wednesday with a quorum of 40% in favour.
A dead wallet address he published has received about 280 million LUNA, despite the fact that he had previously said that transferring tokens to the burn address made no sense other than to lose them.