South Korean Financial Regulators Begin Terra Probes, Politician Calls for Kwon to Face Parliamentary Hearing
The Terraform Labs mastermind Do Kwon (real name Kwon Do-hyeong) could be facing trouble from financial and law enforcement authorities in South Korea and Singapore as a torrid month for the Terra (LUNA) platform just keeps getting worse.
Following reports that Kwon appears to have dissolved two domestic arms of his company as early as late April, the CEO is now facing up to a fresh headache – with South Korea’s top financial regulators on the warpath.
Regulators claim that between 200,000 and 280,000 South Korean investors have been “affected” by the token’s dramatic fall from grace, Newsis reported. The number of investors with LUNA holdings on South Korea’s four biggest domestic exchanges is estimated to be at least 170,000.
To further compound the misery, all of the South Korean won-trading domestic exchanges have either delisted the Terraform-related coin or are in the process of doing so: Gopax closed all trading for LUNA and Terra KRT (KRT) on May 16, with the market-leading Upbit closing LUNA transactions on May 20. The second-largest platform, Bithumb, will cease LUNA support on May 27. Korbit and Coinone announced they would be halting LUNA trading on May 10.
The Financial Supervisory Service (FSS)’s Commissioner Jeong Eun-bo, who faced questions on LUNA at an executive-level summit, stated:
“There is a concern that trust in the virtual asset market will suffer [as a result], and that there will be damage for users. We will also conduct in-depth discussions with major overseas supervisors regarding the cryptoasset [eco]system in the future.”
The Commissioner added that “although the role of supervisory authorities is limited” in this case, it was “necessary to identify the nature of the damage and the cause of this
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