According to a June 20 report by local media station JTBC, South Korea’s prosecutor’s office has barred senior Terraform Labs personnel from leaving the country. According to JTBC, the travel ban was enforced to prevent Terra personnel from departing the country to evade scrutiny.
The departure ban was imposed by the Seoul Southern District Prosecutor’s Office in connection with the ongoing investigation into Terraform Labs‘ role in the demise of TerraUSD (UST).
Terra founder and CEO Do Kwon is currently residing in Singapore, according to JTBC. As a result, the prosecutor’s office is attempting to have Kwon’s passport revoked before further investigation.
Prosecutors are also looking into charging Kwon and other Terra employees with crimes such as fraud. According to Daniel Hong, a former Terra developer, the travel ban includes former Terra employees.
Hong went on to say in the short Twitter thread that he and other employees were not informed of the ban.
When Hong contacted the prosecutor’s office, he was told that such prohibitions are not announced in order to prevent investigation targets from destroying evidence. Hong said that being treated as “potential criminals” is “absolutely outrageous and unacceptable.”
He added that the travel ban might lead some employees to change their minds about cooperating with the authorities. South Korean authorities launched investigations into Terraform Labs and its employees after the collapse of UST and its sister token LUNA, which left over 200,000 Koreans affected.
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