South Korea employee of Terraform Labs on flight bits list

South Korean prosecutors have banned Terraform Labs to leave the country, as the investigation against the company and its co-founders deepen after the $ 40 billion impression of its cryptocurrency.

The public prosecutor's office of the southern district of Seoul announced on Tuesday that the travel ban was imposed on "dozens of" former and current employees of Terraform Labs, and rejected it to give further details.

The sudden collapse of Terrausd, a stable coin, and the associated token Luna in mid -May, chaos triggered the cryptocurrency markets, since companies in the entire industry got under financial pressure through a sale of digital assets.

The price of Bitcoin, the most active cryptocurrency worldwide, fell below $ 20,000 for the first time since November 2020. Bitcoin was traded at $ 20,442 in Asia on Tuesday.

South Korea's flight ban for Terraform Labs was carried out after a special department for financial crime from the public prosecutor's office had started an investigation into two class lawsuits last month, which was submitted in the name of a total of 81 investors. The investors claimed that "the founders of Terraform and the company deceived investors with their incorrect algorithmic coins," says the documents.

Daniel Hong, an ex-employee of Terraform Labs, wrote on Twitter that he could not fly to New York due to the ban on travel.

"People who are treated as potential criminals are absolutely outrageous and unacceptable," he said, adding, "anyone who would no longer want to work.

It is absolutely outrageous and unacceptable that people are treated as potential criminals in this way

betting that everyone who was ready to cooperate no longer wants to

-Daniel Hong 🪄 (@unifiedh) 20. June 2022

Financial authorities around the world are working on the regulation of the cryptom market after the Implosion of Terrausd and Luna, which was developed by Do Kwon, the 30-year-old founder of Terraform Labs.

After the collapse of Terrausd, the crypto exchanges in Seoul formed a consulting committee to ensure compliance with legal regulations and to strengthen investor protection.

Kwon's legal problems go beyond South Korea. A US court has instructed him to follow the prayers of the Securities and Exchange Commission regarding the sale of potentially non-registered securities.

The SEC is looking for information about the Mirror Protocol, a trade network that builds on the Terra ecosystem and offers customers token that are pursuing the price of some of the largest listed companies in the USA, such as Apple and Amazon.

In Northern California, a class action lawsuit was submitted this month in which the plaintiffs Kwon and his company suspect that they have been sold not registered and misleading investors by "repeatedly promoting the stability of VAT".