South Korea revives ‘Grim Reaper’ financial crimes unit to investigate Terra’s collapse

A specialised monetary crimes unit has been tasked with investigating final week’s collapse of the Terra blockchain’s primary cryptocurrencies whereas founder Do Kwon faces hefty tax fines, in keeping with South Korean media studies.

The group, consisting of prosecutors and staff from the Monetary Providers Fee and the Monetary Supervisory Service, will examine the strategies Terraform Labs used to draw buyers, SBS Information reported on Wednesday. 

The unit’s accuracy and scientific method has earned it the nickname “Yeouido Grim Reaper,” after the Yeouido monetary district of Seoul. It’s coming again into operation to research Terra after being disbanded two years in the past, in keeping with SBS Information.

The Terra ecosystem fell into chaos final week after its stablecoin providing, TerraUSD (UST), de-pegged — inflicting the value of Terra’s native token Luna to plummet in worth as provide soared to guard the peg. Kwon is now proposing forking Terra to revive the community. 

A separate report in Edaily mentioned Kwon is going through a tax invoice of 100 billion received ($78 million) for evading company and earnings tax funds. 

The investigation associated to the formation of the Luna Basis Guard (LFG) in Singapore, a relocation of the corporate’s headquarters which seemed to be for tax functions, in keeping with Edaily. It discovered that regardless of the authorized entity relocating to Singapore, LFGs administration continues to be carried out by home firms and residents in South Korea. 

Korean tax authorities are additionally getting ready a separate 100 billion received effective to LFG, in keeping with the report.

Kwon and LFG didn’t instantly reply to requests from The Block to touch upon the studies.

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