South Korea Imposes Travel Embargo On Terraform Labs Employees Pending Crypto Investigation

South Korean prosecutors have banned Terraform Labs employees from leaving the country pending an investigation after its cryptocurrency's $40 billion wipeout, the Financial Times reports.
Investors alleged that Terraform founders and the company duped investors with their flawed algorithmic coins.
Around 15 people, including former project developers for the Anchor lending protocol, received travel restrictions, Bloomberg reports.
The regulators stepped up their investigation into the company and its co-founders following TerraUSD stablecoin's collapse that wiped off $40 billion in market value for holders of UST and its sister coin Luna.
Prosecutors could also invalidate Terraform Labs co-founder Do Kwon's South Korean passport.
A US court has ordered Kwon to comply with subpoenas from the SEC regarding the sale of potential unregistered securities.
The SEC sought information on a trading network built on the Terra ecosystem that offered customers tokens closely tracking the price of some of the largest U.S.-listed companies like Apple Inc AAPL and Amazon.com Inc AMZN.
A U.S. class-action lawsuit alleged Kwon and his company were selling unregistered securities and misleading investors by "repeatedly touting the stability of UST."
Bitcoin price plunged below $20,000 for the first time since November 2020 and is about 70% below the November 2021 high.
The terraUSD stablecoin, launched in 2020, was at a steady value of $1. However, its dollar peg broke in May.
Photo via Company

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South Korea Imposes Travel Embargo On Terraform Labs Employees Pending Crypto Investigation