Just In: S. Korea Police Seek To Protect Terra Funds

Even as the South Korean authorities try to probe the disastrous Terra crash, a new development took place in this regard on Monday. The latest action appears to be a cautious move to prevent any further loss of Terra funds and investor money.

The South Korean police have reportedly taken measures to freeze the Luna Foundation Guard’s ( LFG ) money. The LFG supports Terra cryptocurrency, which took a more than 99% hit due to an unexpected meltdown on May 12.

The police measures come after the controversy surrounding Terrra continues, as a vote on founder Do Kwon’s second revival plan continues.

Protecting Terra Funds

According to South Korea’s national media outlet KBS,

“The Seoul Metropolitan police agency’s first cybercrime investigation unit said it had recently requested each exchange to “freeze” Luna Foundation Guard from withdrawing corporate funds from accounts held on cryptocurrency exchanges.”

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The police explained that there were clues to suspect that funds related to the embezzlement flew into Luna Foundation Guard. This is what led to the immediate action for freezing the money.

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It is still not clearly known about the extent of restrictions on fund withdrawal. This is because the freeze action requested by the police is not mandated by law. However, the issue could be arbitrarily carried out by individual exchanges.

Kwon’s Tax Charges

Last week, the South Korean tax authorities charged Kwon and Terraform Labs with over $78.4 Million in unpaid taxes. Kwon has been under scrutiny since the collapse of the Terra network. However, he has laid out some plans in a bid to revive the Terra Chain.

The agency’s previous investigation in October 2021 resulted in the imposition of $3.64 million in income tax on Terra Virgin. In addition, a corporate tax of $34.7 million was also pressed on the firm. The agency also added that LFG was established overseas to avoid taxes.

Meanwhile, Terraform Labs in all likelihood will move ahead with forking Terra after 66% voter in favor of the new rival plan. As per the rebirth plan, a new Terra blockchain and LUNA token will be generated.

Anvesh is keen on writing about major announcements around crypto adoption by institutions and popular personalities. Having been associated with the cryptocurrency industry since 2016, his interest in this space helped pivot his journalism career to the blockchain ecosystem. Follow him on Twitter at @AnveshReddyEth and reach out to him at anvesh (at) coingape.com
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