TerraForm Labs has come under legal scrutiny since the collapse of its LUNA cryptocurrency and the TeraUSD stablecoin
TerraForm Labs has come under legal scrutiny since the collapse of its LUNA cryptocurrency and the TeraUSD stablecoin
Prosecutors have said that many employees of South Korea-based TerraForm Labs, the company behind the stablecoin TeraUSD, which collapsed last month and rocked cryptocurrency markets, cannot leave the country.
TerraUSD’s paired token, LUNA, fell in value last month, sell off and igniting a chain reaction that has pushed some major institutions The crypto sector in serious trouble, The meaning of TeraUSD was pegged to the US dollar 1:1.
An official at South Korea’s Supreme Prosecutor’s Office, who declined to be named as is customary in South Korea, said several Terraform Labs employees had been put on a no-fly list.
He said he could not give any further details till the completion of the investigation.
“We are not aware of the details of the ban,” a Terraform Labs spokesperson said in a statement.
Losses associated with the stablecoin contributed to difficulties at US-based crypto lender Celsius, which this month suspended withdrawals, and Singapore-based crypto hedge fund Three Arrows Capital, which is selling assets and options including a bailout by another firm. is considering.
world’s largest cryptocurrency bitcoin, Around $20,000. doing business onIt has lost almost half of its value since the beginning of May, when the problems with TeraUSD became apparent.