February 6, 2023

Seoul police are seeking to ban the entity from withdrawing suspected embezzled funds.

Source: Coindesk.com
Source: Coindesk.com

South Korean police are moving to freeze Luna Foundation Guard’s money in the wake of this month’s TerraUSD (UST) stablecoin collapse, according to a Monday report from KBS news.

The Seoul Metropolitan Police have asked various crypto exchanges to ban Luna’s capability of withdrawing company funds, the report said. It was not clear which exchanges were asked or whether they have complied.

Terraform Labs lost $30 billion this month when Terra’s UST stablecoin and LUNA cryptocurrency went into a death spiral, costing investors billions globally.

The associated Luna Foundation Guard was charged with protecting UST’s peg using a war chest of billions of dollars in bitcoin (BTC); it ultimately failed.

Terraform Labs CEO Do Kwon is already under the financial crimes microscope and is facing a tax evasion investigation by a South Korean police unit known as the “Grim Reaper.”