South Korean prosecutors have banned Terra employees from leaving the country

South Korea’s prosecutor’s bureau has restricted cardinal employees of Terraform Labs from leaving the country, according to a report by section media outlet JTBC connected June 20.

The question prohibition has been imposed to forestall Terra employees from fleeing the state to debar investigation, according to JTBC.

The Seoul Southern District Prosecutor’s Office levied the departure prohibition successful transportation with the ongoing probe against Terraform Labs for its relation successful the illness of TerraUSD(UST).

JTBC reported that Terra laminitis and CEO Do Kwon is presently residing successful Singapore. Therefore, the prosecutor’s bureau is looking to invalidate Kwon’s passport earlier further investigation. The prosecutors are besides exploring whether Kwon and different Terra employees tin beryllium charged with crimes specified arsenic fraud.

The question prohibition encompasses adjacent erstwhile employees of Terra, arsenic pointed retired by Daniel Hong, a erstwhile developer astatine Terra.

stop asking maine wherefore one couldn't marque it to NYC frens, this is why: the Korean authorities imposed an exit prohibition for each ex-@terra_money employees contiguous pic.twitter.com/5Jds99ZNwQ

— Daniel Hong (@unifiedh) June 20, 2022

In the abbreviated Twitter thread, Hong went connected to accidental that helium and different employees were not notified astir the ban. When Hong contacted the prosecutor’s office, helium was informed that specified bans are not announced to forestall probe targets from destroying evidence.

Hong said that being treated arsenic “potential criminals” is “absolutely outrageous and unacceptable.” He added that the question prohibition mightiness pb immoderate employees to alteration their minds astir cooperating with the authorities.

South Korean authorities launched investigations into Terraform Labs and its employees aft the illness of UST and its sister token LUNA, which near implicit 200,000 Koreans affected.

In addition, South Korea’s apical crypto exchanges person agreed to form a consultative body to guarantee stringent coin listing rules and debar a repetition of the Terra-LUNA fiasco.

The station South Korean prosecutors person banned Terra employees from leaving the country appeared archetypal connected CryptoSlate.