SEOUL >> South Korean prosecutors have barred dozens of people connected to Terraform Labs from leaving the country as they expand an investigation into a $40 billion collapse of the company’s cryptocurrency that devastated traders around the world.
The Seoul Southern District Prosecutor’s Office said Wednesday it plans to summon them for questioning as it tries to determine whether the company committed fraud or violated financial regulations before the implosion of its digital currencies, TerraUSD and Luna, in May.
The office didn’t specify the number of people placed under the monthlong travel ban or who they are, although they may include current and former staff members and developers. Prosecutors refused to provide more details, saying the investigation was ongoing.
Daniel Hong, a former Terraform developer, tweeted a government notice showing that he was banned from leaving the country through July 19. Hong tweeted: “stop asking me why i couldn’t make it to NYC…