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Author Topic: South Korean police request exchanges freeze LFG related funds  (Read 98 times)
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May 24, 2022, 07:17:03 AM
 #1

Police in South Korea have contacted the country’s leading exchanges to freeze any funds linked to the embattled Luna Foundation Guard.

The Luna/Terra algorithmic stablecoin crash, which reduced the coin's value by over 99%, crushed investor portfolios overnight earlier this month.

However, this request is not demand and is not enforceable by law. Each exchange can choose how they would like to respond, but it is not yet known how they will react. Several prominent Korean investors requested that Do Kwon, CEO of Terraform Labs, be investigated and sued for the collapse of the UST stablecoin. This triggered the revival of the “Grim Reaper,” a Korean Financial and Securities Crime Joint Investigation Team.

The actions by the National Assembly and the Korean authorities make it clear that Korea is willing to take the necessary steps to get to the bottom of the Terra ecosystem collapse imbroglio.

(Source: Cointelegraph)

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May 24, 2022, 08:56:51 AM
 #2

There might be a hidden story that have not even known by public. The police has been doing the right thing. There must be a request from the regulators to freeze all of funds that owned by LFG or do kwon. LFG has no fund left and that's probably owned by do kwon.

I hope that police can trace whole funds that may be being stolen by the developers. We will be seeing the government put this as their main concern.
Luna team was facing another problem here. They may be jailed in the future.

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May 24, 2022, 11:25:27 AM
 #3

I am so happy to hear that the South Korean government is so responsive to the problems with $LUNA and $UST, that they want to freeze all funds related to LFG. I firmly believe that the collapse of $LUNA and $UST was not a coincidence but rather an obvious plan. It is time for us to say goodbye to all the obscure stablecoins like algorithmic stablecoins.

R


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May 24, 2022, 12:30:05 PM
 #4

IMHO, I believe it should be done accordingly because as far as I know many South Korean investors were also affected by the recent Luna and UST Stablecoin price crash, And for that particular reason, I believe that there should be a deep and thorough investigation will be conducted to dig deeper into the cause and to know if what was really happened on that day. thats why I think that the South Korean police request has a valid reason that every exchange in South Korea should be followed.
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May 24, 2022, 01:04:19 PM
 #5

this is a very good news for any holders of luna who have bought this shit scam coin at the peak price. If the police will able to trace whole of funds related with the do kwon and im sure that if people will request for the refund. If the police can block all of the funds that have not yet been moved to the new wallet other than exchange hot wallet and the holders of luna will able to get at least the good news about that.

The regulators have more power to do that. If the exchange site was refusing it and it's better for the users who got scammed to take the legal action against exchange site as well.

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May 24, 2022, 01:13:13 PM
 #6

Police in South Korea have contacted the country’s leading exchanges to freeze any funds linked to the embattled Luna Foundation Guard.

The Luna/Terra algorithmic stablecoin crash, which reduced the coin's value by over 99%, crushed investor portfolios overnight earlier this month.

However, this request is not demand and is not enforceable by law. Each exchange can choose how they would like to respond, but it is not yet known how they will react. Several prominent Korean investors requested that Do Kwon, CEO of Terraform Labs, be investigated and sued for the collapse of the UST stablecoin. This triggered the revival of the “Grim Reaper,” a Korean Financial and Securities Crime Joint Investigation Team.

The actions by the National Assembly and the Korean authorities make it clear that Korea is willing to take the necessary steps to get to the bottom of the Terra ecosystem collapse imbroglio.


Exchanges should follow the request, they have seen anomalies and investors should have the right to know what happened to avoid similar things to happened what happened to Luna is unprecedented there should be no another crash like this, what happened to Luna is like a domino effect in the Cryptocurrency market, and send shiver to the community.

Their new Luna token is a way to appease holders who lost a lot of money and make them believe that they can still recover money that they've lost I doubt if Luna will ever reach its old all-time high, and not all old investors will still trust the new token coming from Luna.

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May 24, 2022, 01:41:05 PM
 #7

This collapse that happened with luna already made so many eyes are focusing into this case. South korean regulators known about how big the impact that already made by this case to the image of south korea. This is become another problem for luna. I meant if the terra luna team will be lied with all of scenarios that already made and people gonna massively blaming luna foundation again.

This is pretty interesting to seeing how long terra luna team can avoid the regulators. So far regulators have been doing very good job became a very responsive to help its retail invetors.

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May 24, 2022, 02:37:53 PM
 #8

It is funny how they point their finger at an employee to be the cause of this massive mess.
We have received information that there is a person suspected of embezzling corporate funds who is believed to be an employee of Terraform Labs.
It is impossible to imagine an employee holding the key to the vault.   It is quite unbelievable unless this employee is the one behind the project but.. shouldn't that person be called an employer?

Anyway, it is a good thing that authorities are stepping in on this case, I hope the perpetrator will be arrested, fined and jailed.
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May 24, 2022, 02:51:17 PM
 #9

Their new Luna token is a way to appease holders who lost a lot of money and make them believe that they can still recover money that they've lost I doubt if Luna will ever reach its old all-time high, and not all old investors will still trust the new token coming from Luna.
Luna announcement attempts to relieve investors and the community of the negative impact after the price collapse at the lowest point, so whatever the team's efforts will not return to the previous condition because investors will not want to lose again. So anyway, we need to know the real facts based on reports from investigators if this case is raised for investigation.

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May 24, 2022, 02:57:52 PM
 #10

I have said that government pressure on the Terra fiasco is expected and will keep coming.

All I can see is exchange will obey what governments in favour, even if the ruling or request is not enforced, the centralized exchange won't take further hassle regarding this, let's say that there is indeed something shady regarding LFG funds flow, they surely will play it safe in order to satisfy government request.
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May 24, 2022, 05:12:55 PM
 #11

The team is still holding funds on the exchanges? I am wondering how exchanges will react to the request not an enforcement because the project team did something which broke everyone who invested on the project with blink of the eye so there should be proper investigation to be done and the funds should be held until the clear report comes up then government can decide what they can do.

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May 24, 2022, 06:52:17 PM
 #12

This case must be thoroughly investigated, it may require a long process, there is a series of deliberate oddities, starting with Ust falling and then Luna also being dropped. The announcement of a new proposal is like a diversion to stay positive, but I'm not even interested in what Do Kwon is proposing. Glad that the government has responded swiftly to this case.

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May 24, 2022, 07:31:55 PM
 #13

South Korean police have make investigation what happen with UST stable coin from Terra Luna network drop drastically, this effect from developer make coins become scam or have other person why make many people losing much money on UST and Luna. Have report from South Korean investor before to investigate with Do Kwon as the owner from UST and Luna coin, not any hope for Luna and UST back higher price after many investor loss there and little hard how to get back reputation except investigate on this coin happening by South Korean police.

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May 24, 2022, 08:31:25 PM
 #14

When it falls, LUNA will never be able to return to the peak of fame before. They are facing a serious case. Not a few demands that we can see where Du Kwon lives. In fact, this has become quite big news in South Korea. It is only natural that the South Korean government should take appropriate action so that this will be a severe blow to those who have harmed so many people.

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May 25, 2022, 02:07:26 AM
 #15

Despite the investigation that already made by the regulators and community was always trying to trace where all of LFG funds going on. Fatman was actively doing this to answer the question about where was whole of money disappeared? In my opinion when people are seeing this and they must not invest in this shit. Regulators and community will find the truth. I hope that exchange site can follow the request by regulators and people will know about the truth as soon as possible.
This will be also recovering the trust from the investors that already lost a lot from luna

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