Since the Terra network saw a massive collapse, there has been a huge skepticism regarding it and its related entities, including Luna Foundation Guard.
Institutions that indulge in crypto activities, including ការផ្លាស់ប្តូរអ៊ីនគ្រីប, have been issued legal notices in South Korea. These exchanges are requested in the notices by the police about the shut down of the operations relating to Luna Foundation Guard’s funds. All this is seen as proceedings followed after the Terra (LUNA) network collapse.
ការផ្លាស់ប្តូរគ្រីប in South Korea received a request from Korean authorities on Monday, asking them to prevent the withdrawal of funds belonging to LFG. These authorities especially included the Seoul Metropolitan Police Agency, which asked for the prohibition on any activity by the Luna Foundation Guard considering the suspicion of stealing the funds belonging to the organization.
Earlier this month, the crash in Terra networks algorithmic stablecoin UST got depegged, and its value slipped by more than 99% in a short span of time. This collapse made a huge hole in the portfolio of the Terra (LUNA) network investors. Earlier investors in South Korea also demanded to seize the property belonging to the co-founder of TerraForm Labs, Do Kwon, and now this request from the Police department to freeze the funds related to its non-profitable organization Luna Foundation Guard.
Now the point is that the request made to stop activity in LFG funds is first not a demand, and it is not enforceable by the law. So this gives the crypto exchanges the authority and liberty to choose how to respond to the request; however, it is not known from any of them how they will approach this.
Earlier, the request was made by South Korean investors to investigate the co-founder and CEO of Terraform Labs, Do Kwon, and they also want them to get sued for the TerraUSD stablecoin UST’s collapse. These actions made the revival possible of a Joint Investigation Team of Korean Financial and Securities Crime named Grim Reaper.
The country’s Legislators have tried to meet with executives from each exchange individually, including Upbit, Bithumb, Korbit, Gopax, and Coinone. As there is no pressure on ការផ្លាស់ប្តូរអ៊ីនគ្រីប to act upon the request, these meetings are being made to put pressure on these crypto exchanges.
Source: https://www.thecoinrepublic.com/2022/05/25/are-crypto-exchanges-going-to-act-on-the-south-korean-police-to-freeze-funds-related-to-lfg/