Breaking News: Terra Developers face travel embargoes imposed by the Korean Financial Authority

According to the Korean news website JTBC, the Seoul Joint Financial and Securities Crimes Investigation Team has imposed a travel ban on developers from the Terra team. This is a result of the ongoing investigation into Terra by the Korean authorities.

TFL members were not made aware of the ban.

After the LUNA and UST crash, authorities have been after the Terra founder, Do Kwon. His legal troubles seem to be compounded as Korean authorities have now banned current and former members of his team from traveling.

This measure seems to have been taken to prevent such people from suddenly leaving the country, as it seems that a more serious investigation into the company will soon be launched.

According to a Terra employee, David Hong, none of them were notified about the restrictions beforehand and said it was done so that they wouldn’t be able to destroy evidence.

Hong tweeted saying that people being treated as potential criminals like this is, to be honest, outrageous and unacceptable. 

At the moment, the prosecution is said to be coordinating the investigation program with the Terra officials. However, an official from the Ministry of Justice pointed out that, it is impossible to assure whether the departure ban is in relation to the confidentiality of the investigation. 

New Lawsuit Has Been Filed Against Do Kwon and other Agencies Related to Terra

A United States-based plaintiff has filed a class-action lawsuit against Terraform Labs, Luna Foundation Guard, and some other terra-related VCs. The plaintiff alleged that they misled investors as to whether all Terra tokens are actually securities.

The allegation also contained that in addition to selling unregistered securities with Terra Tokens, Defendants made a series of false and misleading statements regarding the largest digital assets in the Terra ecosystem by market capitalization, UST, and LUNA, to influence investors to purchase these digital assets at inflated prices.

The suit also pointed out Do Kwon’s lack of professionalism prior to the tokens’ collapse. Recent reports have claimed that the UST-LUNA situation was an inside job. Since the crash, various calls for regulation have been made and some state governments have started to make plans for regulation.

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