South Korea Launches "Emergency" Investigation Into Collapse of LUNA and UST
South Korea’s top financial regulators have launched an emergency investigation into the collapse of cryptocurrency LUNA and stablecoin UST. The authorities have asked domestic cryptocurrency exchanges to provide information relating to transactions and investors of the two coins. South Korea’s Emergency Investigation Into LUNA, UST
South Korea has launched an “emergency” investigation of domestic crypto exchange operators following the collapse of the terrausd stablecoin (UST) and terra (LUNA) cryptocurrency, Yonhap News reported Tuesday, citing unnamed sources.
Last week, UST lost its peg to the U.S. dollar, sending its price and the price of terra (LUNA) into free fall. At the time of writing, UST is trading at less than $0.09 while LUNA is near worthless.
South Korean top financial regulators, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), have asked local cryptocurrency exchange operators to share information relating to UST and LUNA, sources told the news outlet.
An official of a local crypto exchange operator was quoted as saying: Last week, financial authorities asked for data on the amount of transactions and investors, and sized up the exchanges’ relevant measures.
“I think they did it to draw up measures to minimize the damage to investors in the future,” the exchange official said.
The information requested by the authorities includes trading volumes, closing prices, and numbers of relevant investors, the publication noted, adding that the regulators also asked the exchange operators to provide their countermeasures to the recent crypto market crash and analyses of the cause of the collapse.
UST and LUNA were invented by Kwon Do-hyung (aka Do Kwon), a South Korean national. His company, Terraform Labs, is incorporated in Singapore. Since the collapse of the two cryptocurrencies, Kwon has come up with a few plans to revive the coins but none has worked so far.
Kwon’s wife reportedly sought police protection after an unidentified man trespassed into their apartment building in South Korea. According to media reports, the man was subsequently identified as an investor who lost roughly $2 million in LUNA’s collapse. Tags in this story South Korea, South Korea Do Kwon, South Korea LUNA, South Korea UST, South Korean crypto exchanges, South Korean cryptocurrency exchanges, South Korean investigation
What do you think about South Korea launching an investigation into UST and LUNA after the two cryptocurrencies collapsed? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products REGULATION | 19 hours ago Iran Blocks 9,200 Bank Accounts Over Suspicious Foreign Currency, Crypto Transactions REGULATION | 21 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleStudy: Amid Mining Bans, China Still Commands World’s Second-Largest Share of Bitcoin Hashrate Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin