South Korean police have reportedly requested exchanges to ‘freeze’ the assets of the Luna Foundation Guard (LFG), the non-profit group arrange to assist the Terra (LUNA) cryptocurrency.
A information report revealed on Monday by Korean nationwide broadcaster KBS says that the cybercrime police unit of the Seoul Metropolitan Police Agency had written to a number of exchanges highlighting the necessity to block withdrawals of company funds initiated by the LFG.
Per the report, investigators connected to the first Cybercrime Investigation Unit are satisfied embezzled funds associated to the LUNA collapse are being held in LFG accounts, thus the necessity for a freeze.
Exchanges not underneath obligation
But regardless of the Police’s request, the report states that exchanges are presently underneath no obligation to comply. Because there’s no authorized requirement to accomplish that, exchanges are at liberty to take motion as deemed match, KBS famous.
LUNA and TerraUSD (UST) collapsed dramatically this month, with the worth of the stablecoin de-pegging from the greenback to zero. The LUNA coin additionally crashed 100%, setting in movement actions that embrace a lawsuit in opposition to Terraform Labs and probably more durable sanctions from regulators, together with from South Korean lawmakers.
Amid all these are query marks on how LFG dealt with the reserves underneath its management, with the group saying it spend 80,000 BTC attempting to save the UST peg.
An replace from the Foundation on 16 May confirmed that its reserves steadiness included 313 BTC, 39,914 BNB, and 1,973,554 AVAX in addition to 1.8 billion UST and over 222 million LUNA.
1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the next assets:· 80,394 $BTC· 39,914 $BNB· 26,281,671 $USDT· 23,555,590 $USDC· 1,973,554 $AVAX· 697,344 $UST· 1,691,261 $LUNA
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
