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‘Grim Reapers’ monetary crimes unit revived to research Terra collapse

Authorized troubles are mounting for the co-founder of failed Terra crypto undertaking Do Kwon because the South Korean authorities revives the dormant “Grim Reapers of Yeoui-do” to research Terra’s fall.

The particular investigative and prosecutorial group consists of members from numerous monetary regulators, and is designed to prosecute securities fraud and unfair buying and selling schemes. Probably in danger are co-founders Do Kwon and Shin Hyun-seong, together with core members of the Terra group. Yeoui-do is the monetary heart of Seoul.

As we speak: Korea’s “Grim Reapers of Yeouido” – Monetary and Securities Crime Joint Investigation Group – are again after 2.5 years.
And its first goal is $LUNA / @terra_money

— Jun (@zunahn) Might 18, 2022

Korean information outlet SBS Information confirmed on Wednesday that the Terra case could be the primary the resurrected Securities Crimes Joint Investigation Group would examine. A consultant from the group informed SBS Information that, “The Terra case prompted extreme harm to common residents which led us to designate this as the primary investigation.”

Reforming the scary investigative group could also be a political transfer by the brand new conservative President Yoon Seok-yeol, reversing the choice by the earlier liberal Moon Jae-in administration to disband it. Nevertheless, the severity of the Terra state of affairs is illustrated by the very fact that it’s the first case the investigators will deal with in two years.

The group earned the moniker The Grim Reapers because of the high-profile circumstances it dealt with. One of many largest circumstances the group dealt with was the $1.2 billion Lime Asset Administration embezzlement scandal. The group was disbanded earlier than the investigation was full, in order that case is ready to be reopened.

Earlier than being disbanded, the group racked up 346 arrests from 965 circumstances prosecuted from 2013 to 2020.

Terra (LUNA) is a layer-1 blockchain. Luna and the stablecoin Terra USD (UST) had been every among the many prime ten cryptocurrencies by market cap till a dump of UST on Might 8 sparked a dying spiral that has led to billions in losses. On Might 8, Terra had a market cap of $24.8 billion, however is now $959 million in response to CoinGecko.

Many locally maintain Kwon answerable for the collapse of the undertaking. In South Korea, a gaggle of Terra traders can also be set to sue Kwon in civil courtroom for damages and in felony courtroom for fraud. They may also push for the courtroom to grab Kwon’s property.

$LUNA and $UST Korean traders have filed each civil and felony lawsuit towards Do for committing fraud. In addition they filed to order a provisional seizure (freeze) of his property.

They’re represented by authorized agency LKB & Companions.

— Doo | StableNode @Permisionless (@DooWanNam) Might 18, 2022

As reported by Moonwha Ilbo (Tradition Journal) on Might 18, the authorized group concerned within the felony case will probably be prosecuting based mostly on provisions within the Capital Markets Act, which is used to control monetary features of the crypto trade however which can get replaced by crypto-specific legal guidelines.

The authorized group at LKB & Companions, the agency dealing with the case, have a private stake within the undertaking, as associate Kim Hyeon-kwon said to Moonwha Ilbo, “Some attorneys at this legislation agency had been traders in Terra.”

A consultant from the legislation agency didn’t instantly reply to a request for remark.

Associated: Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview

Kwon’s authorized troubles prolong past South Korea as a resident of Singapore filed go well with towards Kwon final week on behalf of at the least 1,000 different residents who invested within the Terra ecosystem.

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