TerraUSD’s pairing token, Luna, dropped in value last month.
Seoul:
Prosecutors said some employees of South Korea-based Terraform labs, the company behind stablecoin TerraUSD, which collapsed last month and rattled the crypto markets, unable to leave the land. water, prosecutors said.
TerraUSD’s pairing token, Luna, dropped in value last month, sparking a sell-off and triggering a chain reaction that has pushed several major institutions in the crypto space into serious trouble. . TerraUSD is pegged 1:1 to US dollars.
An official at South Korea’s Supreme Prosecutors’ Office, who declined to be named as is customary in South Korea, said many Terraform Laboratory employees have been placed on a no-fly list.
He added that he could not provide further details until the investigations were completed.
A spokesperson for Terraform Labs said in a statement, “We are not aware of the details of the reported ban.”
Stablecoin-related losses also contributed to difficulties at US-based crypto lender C, which suspended withdrawals this month, and crypto hedge fund Three Arrows Singapore-based Capital, is looking at options including an asset sale and a bailout by another firm.
Bitcoin, the world’s largest cryptocurrency, is trading at around $20,000, having lost about half of its value since early May, when the problems with TerraUSD became apparent.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
