Korea bars Terra developers from leaving the country: JTBC News
Quick Take
- Korea’s financial crimes unit has reportedly blocked Terra developers from leaving the country.
- One former developer said that this was “outrageous and unacceptable.”
Prosecutors in Korea have blocked Terra developers and former developers from leaving the country as investigations into the failed crypto project continue.
According to Korean media outlet JTBC News, the newly reconstituted Financial and Securities Crime Joint Investigation Team says the travel embargo is to prevent persons of interest in the case from leaving the country. This move could also be in preparation for additional investigative actions such as search and seizures, as well as subpoenas for other persons involved.
One former Terra developer, Daniel Hong, said on Twitter that developers like himself had not been notified of the travel embargo. He said, "[to be honest] people being treated as potential criminals like this is absolutely outrageous and unacceptable."
Do Kwon and Terraform Labs are already the subject of several ongoing investigations and lawsuits in different jurisdictions both in Korea and abroad. These regulatory troubles stem from the collapse of luna and the TerraUSD (UST) stablecoin.
Terraform Labs is also under investigation for possible tax evasion in Korea to the tune of about $78 million. Kwon has previously responded that the company does not have any outstanding tax liabilities in the country.
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