South Korea Regulators Launches Emergency Disquisition Into LUNA and UST After its Collapse
May 20, 2022 1:40 PM
Amidst LUNA and its stablecoin UST crash, South Korea's top financial controllers have launched an exigency disquisition. The authorities have asked domestic cryptocurrency exchanges to provide information relating to deals and investors of both crypto assets.
Emergency Investigation Into LUNA, UST by Regulators
According to a report by Yonhap News on Tuesday, South Korea has launched an “ exigency” disquisition of domestic crypto exchange operators following the collapse of the Terraform labs stablecoin (UST) and terra (LUNA) cryptocurrency.
Just Last week, UST lost its cut to the U.S. bone, transferring its price and the price of terra (LUNA) into free fall. At the time of report, UST is trading at lower than$0.09 while LUNA is trading just above $0.00013 at the time of writing.
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), have asked original cryptocurrency exchange drivers to partake information relating to UST and LUNA, sources told the news outlet.
A functionary of a local crypto exchange operator was quoted as saying
Last week, financial authorities asked for data on the quantum of deals and investors, and sized up the exchanges’ applicable measures.
“ I suppose they did it to draw up measures to minimize the damage to investors in the future,” the exchange functionary said.
The information requested by the authorities includes trading volumes, closing prices, and figures of applicable investors, the publication noted, adding that the controllers also asked the exchange drivers to give their countermeasures to the recent crypto request crash and analyses of the cause of the collapse.
UST and LUNA were constructed by Kwon Do-hyung (aka Do Kwon), a South Korean native. Terraform Labs, his company is incorporated in Singapore. Since the collapse of the two cryptocurrencies, Kwon has come up with various failed plans to revive the coins but none has worked so far.
Kwon’s woman reportedly sought police protection after an unidentified man transgressed into their apartment structure in South Korea. According to media reports, the man was latterly linked as an investor who lost roughly$ 2 million in LUNA’s collapse.