South Korea puts staff of this crypto company on the no-fly list

TerraUSD’s paired token, Luna, plunged in value last month.

Seoul:

Several employees of South Korea-based Terraform Labs, the company behind the TerraUSD stablecoin, which collapsed last month and rocked cryptocurrency markets, cannot leave the country, officials said. prosecutors.

TerraUSD’s paired token, Luna, plunged in value last month, triggering a sell-off and setting off a chain reaction that pushed some major institutions in the crypto sector into serious trouble. TerraUSD was supposed to be pegged 1:1 to the US dollar.

An official from South Korea’s supreme prosecutors office, who declined to be named as is customary in South Korea, said several Terraform Labs employees had been put on a no-fly list.

He added that he could not give further details until investigations were completed.

A Terraform Labs spokesperson said in a statement, “We are not aware of the details of the reported ban.”

Losses associated with the stablecoin have also contributed to the struggles of US crypto lender Celsius, which suspended withdrawals this month, and Singapore-based crypto hedge fund Three Arrows Capital, which is considering options such as selling assets and a bailout by another company.

Bitcoin, the world’s largest cryptocurrency, is trading at around $20,000, having lost around half of its value since early May when the issues with TerraUSD became apparent.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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