South Korean authorities banned Terra developers from leaving the country


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South Korean authorities have banned Terra developers from leaving the country
South Korean law enforcement authorities have banned current and former Terra blockchain developers from leaving the country

Authorities in South Korea have restricted the ability of Terra blockchain developers to move. The local publication JTBC writes about it referring to the resolution of the financial regulator. It is reported that both current and former developers of Terra are under sanctions.

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According to JTBC, sanctioned individuals include a key developer who learned that Terra founder Do Kwon “made enough money to buy the island.” It is also reported that Kwon had been scamming investors’ funds, but it is unclear if this scam was the reason for the collapse of the ecosystem.

According to media reports, the South Korean prosecutor’s office will soon begin summoning Terra’s top executives to testify. It won’t be long before Kwon is put on trial, as the South Korean authorities will have to have his passport revoked first. The founder of Terra is currently in hiding in Singapore, says the magazine.

Read also: Terra founder withdrew hundreds of millions of dollars in the months before the collapse – the media

Recall that in early May, the stabelcoin UST lost its peg to the U.S. dollar. It is not clear exactly what caused the incident, but it is believed that the project was machinated by George Soros, who had brought down the British pound in his time. UST/USD quotes plummeted from $1 to $0.12. The native token of the Terra ecosystem also got under attack, having lost 100% in LUNA/USD pair during the last week.

Previously, the editorial board wrote to BeInCrypto that the Terra project was still subjected to negative consequences after the high-profile collapse. For example, Terra’s legal consultants left the project and the South Korean tax authorities demanded $78 million from Terraform Labs.

Read about why the leading staking providers refused to support Terra 2.0 ecosystem tokens and what the credibility of the project is in the special material of the BeInCrypto editorial.