The South Korean Police is seeking to freeze the assets of the non-profit organization Luna Foundation Guard (LFG) upon Terra’s collapse.
According to a KBS report, the Seoul Metropolitan Police Agency’s Cyber Crime Investigation unit has requested the local exchanges that funds in the Terra-affiliated LFG’s wallets be blocked.
According to the report, the request was made by the police on suspicion of corporate fund misuse.
It is unclear whether the exchanges will comply with the police’s request because they are not compelled by law to freeze the assets.
It’s only the latest twist in a long story involving LFG, Terra, and Terraform Labs. Terra had the biggest crypto meltdown in history earlier this month when its UST stablecoin lost its dollar peg, throwing its volatile token LUNA into a state of collapse.
According to recent reports, the S Korean ruling party summoned officials from five of the country’s largest exchanges on Monday and Tuesday to discuss the recent collapse of the Terra ecosystem.
These firms are Upbit, Bithumb, Coinone, Korbit, and Gopax. They’ll very certainly have to answer whether or not they should be held liable for token holders’ losses.
South Koreans are enraged after Terra’s ultimate collapse, and a few days back the South Korean LUNA & UST investors decided to file a lawsuit against Kwon Do-hyung, the CEO of Terra. The law firm, LKB & Partners is planning to file a lawsuit for fraud and request for provisional seizure of properties of Kwon Do-hyung.
