South Korea Bans Terra Employees’ Exit From Country Amid Investigation
Key Insights:
- Seoul Southern District Prosecutor’s Office imposed a travel ban on crucial Terra developers.
- As long as the investigation continues, the ban will be in effect.
- The newly launched Terra LUNA has met a fate similar to LUNC to some extent.
Terraform Labs’ Terra will definitely go down in history as one of the biggest blunders in the crypto space. Not only did it bring terrible losses to its investors without being a rug pull, but the company behind it also fell into the crosshair of authorities.
South Korea After Terra
The ongoing investigation against Terraform Labs and its employees pertaining to the collapse of Terra (Now Terra Classic, LUNC) has begun affecting the people that were, in a lot of ways, unaware of the workings of the company.
Your capital is at risk
A former employee/developer recently revealed his plight to the world as the Seoul Southern District Prosecutor’s Office called for an absolute travel ban on certain employees that were centric on the development of Terra.
stop asking me why i couldn't make it to NYC frens, this is why: the Korean government imposed an exit ban for all ex-@terra_money employees today pic.twitter.com/5Jds99ZNwQ
— Daniel Hong 🪄 (@unifiedh) June 20, 2022
The same was also brought to light by a local media outlet, JBTC, which in a report highlighted that the travel ban was placed in order to avoid the possibility of either of the company’s employees running away from the country as well as destroying the evidence.
Not only this, the country’s authorities might even proceed to invalidate the CEO Do Kwon’s passport as they begin investigating him.
The Future of Terra
While the company deals with this situation, another situation is starting to develop in the crypto market as the newly launched Terra LUNA 2.0 is back to crashing.
Right after the cryptocurrency came into existence, it dipped and fell from the high of $19.53 to $4.05. Today the altcoin is finding buyers and sellers at a meager $2.01. This marks an 89.7% drawdown in the span of just 20 days.
However, the skepticism that came with the arrival of LUNA along with the broader market bearish crash is keeping it rangebound and might take a while to recover from these lows.