South Korea Launches ‘Emergency’ Investigation Into Collapse of LUNA and UST

South Korea’s prime monetary regulators have launched an emergency investigation into the collapse of cryptocurrency LUNA and stablecoin UST. The authorities have requested home cryptocurrency exchanges to offer data regarding transactions and buyers of the 2 cash.

South Korea’s Emergency Investigation Into LUNA, UST

South Korea has launched an “emergency” investigation of home crypto alternate operators following the collapse of the terrausd stablecoin (UST) and terra (LUNA) cryptocurrency, Yonhap News reported Tuesday, citing unnamed sources.

Last week, UST misplaced its peg to the U.S. greenback, sending its value and the value of terra (LUNA) into free fall. At the time of writing, UST is buying and selling at lower than $0.09 whereas LUNA is close to nugatory.

South Korean prime monetary regulators, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), have requested native cryptocurrency alternate operators to share data regarding UST and LUNA, sources instructed the information outlet.

An official of an area crypto alternate operator was quoted as saying:

Last week, monetary authorities requested for knowledge on the quantity of transactions and buyers, and sized up the exchanges’ related measures.

“I believe they did it to attract up measures to attenuate the injury to buyers sooner or later,” the alternate official stated.

The data requested by the authorities contains buying and selling volumes, closing costs, and numbers of related buyers, the publication famous, including that the regulators additionally requested the alternate operators to offer their countermeasures to the current crypto market crash and analyses of the reason for the collapse.

UST and LUNA have been invented by Kwon Do-hyung (aka Do Kwon), a South Korean nationwide. His firm, Terraform Labs, is included in Singapore. Since the collapse of the 2 cryptocurrencies, Kwon has give you just a few plans to revive the cash however none has labored to this point.

Kwon’s spouse reportedly sought police protection after an unidentified man trespassed into their condo constructing in South Korea. According to media experiences, the person was subsequently recognized as an investor who misplaced roughly $2 million in LUNA’s collapse.

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