- South Korean prosecutors have banned Terraform Labs employees from leaving the country pending an investigation after its cryptocurrency’s $40 billion wipeout, the Financial Times reports.
- Investors alleged that Terraform founders and the company duped investors with their flawed algorithmic coins.
- Around 15 people, including former project developers for the Anchor lending protocol, received travel restrictions, Bloomberg reports.
- The regulators stepped up their investigation into the company and its co-founders following TerraUSD stablecoin’s collapse that wiped off $40 billion in market value for holders of UST and its sister coin Luna.
- Prosecutors could also invalidate Terraform Labs co-founder Do Kwon’s South Korean passport.
- A US court has ordered Kwon to comply with subpoenas from the SEC regarding the sale of potential unregistered securities.
- The SEC sought information on a trading network built on the Terra ecosystem that offered customers tokens…
