Employees from Terraform Labs are reportedly incapable of quitting South Korea because a departure ban has been imposed by the prosecutors of the country on the chief developers of the scheme.
On Monday, JTBC (a media outlet based in South Korea) reported that the office of the Seoul Southern District Prosecutor has allocated an investigation group that implemented a travel prohibition over the main group of participants of Terraform Labs. The prohibition was enforced to make sure that the key figures related to the firm do not move to some foreign country to avoid any additional investigation.
Apart from this, that report also indicated that Do Kwon – the CEO of Terraform Labs (who is the central personality in the inquiry) – is at the moment living in Singapore, outside South Korea. That is why some measures may be taken on the behalf of the prosecution like nullifying Kwon’s passport in advance of initiating a thorough investigation on him.
Daniel Hong – a Terra developer – noted in a Twitter post that the even ex-employees of Terraform Labs were warned to avoid any possibility related to the evidence’s destruction during the investigation. Hong additionally showed discontentment with the prohibition, speaking that it points toward the treatment of the employees as convicts, which is unacceptable in his words.
It was disclosed by the developer that the employees with having some intention to assist may have gone on to back foot due to the prohibition. This change of mind by the employees may not be in favor of the platform. Such a scenario has made the situation considerably difficult for Terraform Labs however the future strategy of the venue has not been declared yet.
In May, a well-known unit focusing on the investigation of financial crimes – also known as “Grim Reapers” – was revitalized on the behalf of South Korean authorities to do the inquiry on the Terra market crash. The group comprises diverse regulators and its concentration will be on prosecuting the illegitimate and fraud-based trading schemes.
In the meantime, South Korean crypto exchanges have developed a unique system to guarantee the regulatory agenda is being complied with in addition to the mutual decisions to avoid such a situation in the future. Within twenty-four hours the emergency system will get at work in the case of this type of fiasco.
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