South Korean authorities oblige Terraform directorate to notify about entry and exit from the country

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The Seoul Southern District Prosecutor's Office, as part of an investigation into the default of the UST stablecoin, ordered former and current executives of Terraform Labs to notify their arrival and departure from South Korea.

Joint Investigation Teamfinancial crimes The Seoul Southern District Prosecutor's Office, which is investigating the Terraform Labs fraud case, notified the company's CEO Do Kwon and co-founder Shin Hyun-Seong to present a "notification on arrival" when entering the country. The notification is a form of document that must be completed and submitted to the appropriate authorities upon entry into the country. The same rule should apply when leaving.

It is known that when Do Kwon wasalong with Chairman Shin and former Vice President Kim Mo in Singapore, prosecutors issued a travel ban notice against all former and current executives of Terraform Labs, including Do Kwon, Shin Hyun-sung and former Vice President Kim Mo. Prosecutors reportedly raided Shin's residence last week.

Decisions to restrict movement followedbehind the launch of a global investigation into the activities of Terraform Labs, whose algorithmic stablecoin TerraUSD (UST) collapsed, destroying investors' wealth by $40 billion. The investigation began in May, after UST sharply lost its peg to the US dollar. UST and Luna fell 91% and 99.7% respectively between May 7 and May 12, and have not recovered. Recently, seven other crypto exchanges in South Korea were investigated for links to Terraform. Transaction records and other documents were seized from the offices of Upbit, Bithumb and Coinone. In addition, Terraform and a number of other companies, including Three Arrows Capital, are facing a class action lawsuit in the US, where the crypto companies are accused of leading retail investors purchasing Terra tokens at inflated prices.