December 1, 2022

US and South Korea join forces to investigate Terra case

The authorities of the United States and South Korea will exchange data on the case of the collapse of the Terra cryptocurrency project. International The partnership will focus on investigating financial crimes in the cryptocurrency sector.

After the historic fiasco of Terra, the question ofthe need for regulatory control over stablecoins has become more acute than ever. So, the Seoul Southern District Attorney's Office and the Supervisory Authority for the Southern District of New York agreed to exchange information regarding the investigation into the collapse of the Terra ecosystem, Yonhap news agency reported.

South Korean Minister of Justice Han Dong HoonDong-hoon discussed with US officials a possible expansion of cooperation to combat security fraud and financial crime. The meeting participants also talked about the collapse of Terra, which made a lot of noise.

“Both parties have agreed to share an update on investigations into current crypto-related cases, including the high-profile case involving the collapse of the TerraUSD stablecoin and Luna digital coin.”

The Terra incident attracted the attention of the worldregulators. Last month, Korean prosecutors launched an investigation into the development team and stablecoin issuers, suspecting them of fraud and market manipulation. One of the leading members of the group was reportedly even banned from leaving the country.

At the same time, the American regulator - the CommissionU.S. Securities and Exchange Commission (SEC) - expanded the scope of the investigation into the Mirror protocol of the Terra-based DeFi platform. The SEC is about to find out if Terraform and Do Kwon are involved in asset protocol sales to US investors. It creates tokens that track the value of assets in the real world. The goal of the project is to provide round-the-clock trading in shares by creating their "synthetic" version. Thus, Mirror, in particular, allows users to trade tokens representing the shares of popular companies such as Apple, Tesla and Amazon.