U.S. and South Korean Officials Meet to Discuss Terra Collapse

0
65
U.S. and South Korean Officials Meet to Discuss Terra Collapse

The meeting between U.S. and South Korean officials for the purposes of “information sharing” could spell more trouble for the collapsed stablecoin project.

Key Takeaways

  • Officials from South Korea and the U.S. met on Tuesday in New York to share information on financial crime.
  • In that meeting, they discussed their investigations of the collapsed stablecoin TerraUSD and its counterpart, LUNA.
  • TerraUSD initially collapsed in May, and the various coins associated with the project have not regained value.

Officials from South Korea and the U.S. met this week to discuss topics including the investigation of May’s Terra collapse.

Officials Discuss Terra Investigation

Prosecutors in either hemisphere may be teaming up to investigate Terra.

South Korean Justice Minister Han Dong-hoon met with two U.S. officials during a visit to New York on Tuesday, June 6, to discuss Terra’s meltdown in May, among other topics.

Scott Hartman and Andrea M. Griswold, chief and co-chief of the U.S. Securities and Commodities Task Force, were also present.

Yonhap News Agency reports that both sides shared data on the “high-profile case surrounding the meltdown of stablecoin TerraUSD and its digital coin counterpart, Luna.”

South Korean prosecutors are reportedly pursuing fraud charges, while the U.S. SEC is investigating whether TerraUSD’s marketing approach broke investor-protection regulations.

The two parties additionally discussed ways to increase information sharing and cooperation around financial crimes and cryptocurrency-related crimes in general.

Prices Have Not Recovered Post-Collapse

The value of Terra’s LUNA and TerraUSD tokens collapsed in the days following May 8. Despite attempts to revive the project by forking Terra’s blockchain, prices remain very low.

TerraUSD Classic (USTC) is valued at $0.05, far below its intended $1.00 price peg. Terra Luna Classic (LUNC) is valued at 1/10,000 of a cent. The revived Terra (LUNA) is priced at $2.14, down significantly from late May when it was worth $10.52.

Though Terra’s collapsed in May, investigations on the matter are likely to continue over the coming months or even years.

In addition to the investigations discussed above, Terra is also being investigated on other fronts. Past reports suggest that staff travel bans, tax fraud, and Ponzi scheme designations have been at the center of recent investigations.

Other reports suggest that South Korea could hold exchanges responsible for failing to protect investors during the crash.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Terraform Labs Staff Banned From Leaving South Korea: Report

News

South Korean prosecutors investigating Terraform Labs and its co-founders Daniel Shin and Do Kwon over Terra’s collapse have reportedly imposed a departure ban on current and former employees. Prosecutors Impose…

Terraform Labs Staff Banned From Leaving South Korea: Report

Terra’s Do Kwon Is Being Investigated for Tax Fraud

News

Prosecutors have started to investigate Terraform Labs CEO Do Kwon for tax evasion, according to reports from local media. South Korean Prosecutors Seize Tax Data SBS News reported today that…

Terra’s Do Kwon Is Being Investigated for Tax Fraud

SEC Expands Probe Into Terraform Labs UST Marketing: Report

News

The U.S. Securities and Exchange Commission has reportedly expanded its Terraform Labs investigation beyond the Mirror Protocol probe and into the company’s marketing practices concerning its now crumpled UST stablecoin….

SEC Expands Probe Into Terraform Labs UST Marketing: Report

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here