Home
News
The South Korean operations of Terraform, the company that created UST stablecoins, the LUNAC token, and the new LUNA coins, were closed in April.
Prosecutors are aware of a business called FLEXE Corporation, according to a KBS TV news report.According to documents submitted by the business, Do Kwon, the CEO of Terraform Labs, is the only executive director of FLEXE. Additionally, the firm is still operating, according to documents submitted by the corporation.
Proof of existence
According to reports, South Korean investigators found proof of an obscure crime subsidiary of Terraform Labs that seems to exist just “on paper.”
Payments of USD 45,000 and USD 95,000 were transferred from Terraform Headquarters in Singapore to what seems to be a Virgin Islands-based shell business, according to corporate documents. Later, the purported shell company transferred USD 9 million to FLEXE and another business.
The media site also stated that the Financial Investigation Department of the Seoul Southern District Prosecutor’s Office has been instructed to join the Financial Crimes Unit’s open investigation against Terraform.
Exchanges are required to use listing criteria that comply with US and EU legislation.
South Korean exchanges have been eager to remove themselves from the “LUNAC/Terra affair,” as it has been referred to by legislators. Listing and delisting regulations have been in the headlines recently. Many criticize exchanges for failing to delist LUNAC in a coordinated manner.
After the price drop in May, some exchanges removed the currency from their stock, while others continued to trade it for a number of weeks until ultimately stating that LUNAC support will terminate in June.
The government has asked exchanges to establish a self-regulatory body that can determine whether to delist securities on a regular basis.
According to Yonhap, the Korea Digital Asset Providers Association, a group comprised of a number of smaller local crypto exchanges, has suggested establishing a “cryptoasset assessment committee” for the whole sector.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
