Korean Police Asks Cryptocurrency Exchanges to Seize Terra’s Property

South Korean law enforcement authorities have asked cryptocurrency exchanges to freeze assets related to Luna Foundation Guard, according to KBS, a local law firm representing the interests of affected investors.

According to a report published on Monday by South Korea’s national broadcaster, the Seoul Metropolitan Police Department’s cybercrime investigation unit has asked several local exchanges to freeze funds held in wallets used by a nonprofit organization affiliated with Terra. The police made the request on suspicion of misappropriation of corporate funds.

Exchanges are not required by law to freeze funds, so it is unclear whether they will comply with the police request.

LFG, a non-profit organization created to ensure the stability of UST, previously made efforts to save UST by selling its bitcoin assets. But this was not enough to prevent UST’s collapse. LFG has since claimed to have spent more than 80,000 bitcoins worth $ 2.4 billion to protect the UST peg, leaving only 313 bitcoins, in addition to its assets in UST, AVAX, and several other digital assets. However, many questions from the media and concerned investors are being ignored, raising even more suspicion.

This week, South Korean lawmakers are scheduled to meet with five of Korea’s leading cryptocurrency exchanges, where they are expected to answer whether they have done everything possible to protect customers from losing their funds.