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South Korea Takes 3 Suspects In For Multi-Billion Crypto Fraud

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  • Three arrested in possible crypto fraud by South Korean authorities.
  • All these activities are the result of Terraform Labs failure.
  • The Terra ecosystem’s collapse created havoc in the cryptosphere.

Korean Authorities Investigating Multi-Billion Crypto Fraud Suspects

Cryptosphere is always perceived as a super volatile market which cannot be trusted as per several regulators around the globe. Recently, Do Kwon’s Terra ecosystem collapse created a super volatile market where the investors were neither able to HODL nor were they getting the chance to sell their assets to set off their investments.

This failure also gave rise to the investigations organized by the South Korean authorities. Bloomberg reported that the regulators have arrested three individuals who are involved in a multi-billion cryptocurrency fraud. The national regulators investigating Terraform Labs investigated several crypto companies including 7 digital asset firms and 15 businesses.

According to the regulators, the suspects are involved in 3.4 Billion USD worth of crypto fraud. The suspects were also charged for the activities involving submission of false data to the financial institutions. They also transferred 304 Million USD in cross-border transactions from South Korea’s Woori Bank. 

South Korean Financial Supervisory Services reported that they spotted large transactions including 1.5 Trillion Korean won during May 2021 and June 2022, from 5 branches and 2.5 Trillion Korean won during the course of February 2021 and July 2022 from 11 branches.

Too Much Havoc Since The Terra Luna Collapse

The collapse of the Terra ecosystem has officially inscribed its name among the greatest financial falls of all time. People are not going to forget this for the years to come. This is a kind of failure which will be taught to the children as history lessons. Do Kwon, founder of Terraform Labs had a robust belief in his creation, but it shattered along with the great fall.

This event was so bad that it shaked the complete cryptocurrency market from top to bottom. It showed no mercy even to the top crypto assets Bitcoin and Ethereum. Both the coins witnessed their worst downfall which tore the faith of many investors on these assets apart brutally.

UST’s fall raised questions over the stability of the virtual assets. This also became a prominent weapon for the regulators who are always trying to find the loopholes in cryptocurrencies.

Though there is a robust belief among the crypto community members that it is going to become mainstream at some point in future. Collapses like this increase skepticism in people, which can affect the crypto adoption globally.

Anurag
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