Following the collapse of the Terra ecosystem in May, several charges were filed against Terraform Labs and its co-founder, Do Kwon. A host of regulatory bodies around the world have opened formal investigations to get to the bottom of the matter.
Korea and US join forces over Terra . to investigate
While visiting New York, Korean Justice Minister Han Dong-hoon met with US prosecutors and discussed ways to improve cooperation in investigating financial crimes involving cryptos.
Per Yonhap Press Agencythe meeting between Han and Andrea M. Griswold, co-chief of the Securities and Commodities Task Force in the US Attorney’s Office for the Southern District of New York, and Scott Hartman, head of the Securities and Commodities Fraud Task Force of the same office, took place on Tuesday.
During the meeting, the two sides considered ways to strengthen cooperation and information exchange between the Seoul Southern District Prosecutors Office and the Southern District of New York office in the fight against securities fraud and financial crimes. Joining forces to investigate Terra was one of their first appointments.
Yonhap Press Agency noted,
“The two sides also agreed to share their latest investigative data on pending crypto matters, including the high-profile case surrounding the collapse of stablecoin TerraUSD and its digital coin counterpart, Luna.”
South Korea is investigating fraud related to crypto tokens. The SEC, on the other hand, is investigating Do Kwon and whether the marketing of UST before it crashed violated investor protection rules or not.
Read more: More pain for Terra as Kwon ordered to comply with SEC probe
South Korea, for its part, has quite strict crypto regulations. Investors are expected to adhere to the guidelines for knowing your customers and money laundering. Getting to the depths of the Terra episode with the help of the US only shows that the nation is strictly opposed to encroachments.