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Korea turns against Luna boss: Police want to freeze LFG funds

 


The UST stablecoin saga takes another turn and South Korea tightens the noose around Terra Forms and Luna CEO Do Kwon.


The 30-year-old Korean once described the UST stablecoin as “the oldest and most widely used algorithmic stablecoin ever”. Now, Kwon is being called to blame for the collapse of the $18 billion UST stablecoin network.


Late last week, South Korean prosecutors launched an official investigation into Terraform Labs. The move came after five Korean investors filed criminal complaints with losses totaling more than $1 million. Victims of the collapsed and battered crypto network Luna accused Kwon of fraud and violating financial regulations.


As Be[In] Crypto reported at the time, authorities wanted to charge the Luna leader with running a Ponzi scheme. The Anchor Protocol DeFi platform was heavily used by UST holders as it offered 20% returns on staking.


Today, Luna's story takes a new turn with the arrival of the Seoul Metropolitan Police Agency

On May 23, local media reported that South Korean police contacted the country's top crypto exchanges. Police asked to freeze all funds linked to the Luna Foundation Guard (LFG).


The report goes on to say that the police said there was evidence that funds related to the LFG could be linked to embezzlement. However, the request was not a demand and the exchanges reserve the right to trade as they see fit at the moment.

This week's police action is not related to the court investigation against the company's CEO.


Self -proclaimed Terra detective “FatMan” has been digging through the digital dirt and demanding more transparency about TerraForm Labs' monthly expenses. In response to Terra's Head of Operations and Community, Chris Amani, who claims to be working with the media to "provide accurate information ," FatMan said :


“Publishes the transaction logs, which the public is allowed to see. Explains where the money from Project Dawn went. Explains how you spent $300 million on transactions in one month. Less words, more financial evidence."


Donghwan Kim of Blitz Labs, a Seoul-based crypto consulting firm, said, “Do Kwon was a successful cult leader who is now the most hated man in Korea.”


Proposal for a Terra Genesis Chain

The official Terra Twitter feed posted on May 24 that the plan to restore the ailing ecosystem does not include a hard fork. Instead, a completely new blockchain is to be created. The post clarified that the important difference is that a forked blockchain shares its entire history with the original chain. However, this is not the case with Terra 2.0.


If the proposal (1623) is accepted, an entirely new Terra blockchain will be created. This starts with Genesis block 0 and has no common history with Terra Classic.

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