South Korea Restricts Terraform Labs’ Staff From Leaving The Country

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South Korea - Cryptocurrencies
South Korea - Cryptocurrencies

Several employees of South Korea-based Terraform labs, the firm behind the infamous stablecoin TerraUSD — which crashed last month and dragged down the cryptocurrency markets — were restricted from leaving the country, prosecutors said.

TerraUSD’s sister token, Luna, collapsed last month, resulting in a dramatic sell-off and sparking a severe market reaction that has dragged down major institutions in the crypto sector into mayhem. TerraUSD was meant to be pegged 1:1 to the U.S. dollar.

An official at South Korea’s Supreme Prosecutors’ Office, who declined to be named as is customary in South Korea, said multiple Terraform Labs staff had been put on a no-fly list.

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He added that he could not give further details until after investigations had wrapped up. A Terraform Labs spokesperson said in a statement, “We are not aware of the details of the reported ban.”

Losses sparked by the stablecoin’s collapse have also led to complicating the life of U.S.-based crypto lender Celsius, which suspended withdrawals this month, and Singapore-based crypto hedge fund Three Arrows Capital, which is considering options including the sale of assets and a bailout by another firm.

Bitcoin, the largest cryptocurrency in the world by market value, is trading at around $20,000, having lost about half of its value since early May, when the problems with TerraUSD became apparent.