Korean police seek freeze on Luna Foundation Guard assets: KBS

Police authorities in South Korea are taking action to freeze assets tied to the non-profit group Luna Foundation Guard, according to KBS, the country’s national broadcaster.

Per the publication, the Seoul Metropolitan Police Agency asked multiple exchanges to block Luna Foundation Guard (LFG) from withdrawing any corporate funds.

However, the exchanges are not bound by law to do so, meaning that whether or not those actions will be carried out is unclear, according to KBS.

Police said that they intervened after finding clues indicating that there were embezzled funds within LFG, per the report.

Following the recent Terra meltdown, which saw the value of stablecoin TerraUSD (UST) fall below $0.10, some investors have already sued Terraform Labs founder Do Kwon.

Also in relation to the recent collapse of the Terra ecosystem, Korean legislators are meeting with representatives from five of the biggest exchanges in South Korea on Monday and Tuesday, according to Chosun Daily.

Those companies are Upbit, Bithumb, Coinone, Korbit and Gopax, according to Newspim. They will likely have to answer to whether or not they should also be held accountable for the loss of funds by token holders.

“We will request a quality investor protection policy to be implemented amongst exchanges,” Yoon Chang-hyeon, chairman of the People Power Party’s Virtual Assets Special Committee, said in a Facebook post, according to Newspim.

Coinone suspended trading of Luna — which is part of the Terra ecosystem and was meant to help UST keep its peg to the dollar — after its value plummeted. At the same time, Korbit and Bithumb issued “investment warnings.”