Exchanges in South Korea have been issued notices from police requesting the sequestering of funds related to the Luna Foundation Guard.
Korean authorities sent a request to the top crypto exchanges in the country to prevent funds from being withdrawn. The Seoul Metropolitan Police Agency asked to ban the Luna Foundation Guard from taking any action. The police claim that evidence has been found that may link the organization to embezzlement.
The Terra algorithmic stablecoin crash reduced the value of the coin by over 99%, destroying investor portfolios overnight earlier this month. However, this request is not a demand and is not enforceable by law. Each exchange can decide how they would like to respond, but it is not yet known how they will react.
Several prominent Korean investors requested that the CEO of Terraform Labs, be investigated and sued for the collapse of the UST stablecoin. This triggered the revival of the Grim Reaper a Korean Financial and Securities Crime Joint Investigation Team.
Korean legislators have met with executives from each of these exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. Because they are not required to comply, this meeting is likely a move to put pressure on the heads of these exchanges.
