South Korea places crypto firm Terraform Labs’ employees on no-fly record

South Korea places crypto firm Terraform Labs’ employees on no-fly record

The collapse of the Terra ecosystem will go down as one of the vital painful and devastating chapters in crypto historical past.

Gabby Jones | Bloomberg through Getty Photos

A number of staff of South Korea-based Terraform labs, the corporate behind the stablecoin TerraUSD, which collapsed final month and roiled cryptocurrency markets, can’t depart the nation, prosecutors stated.

TerraUSD’s paired token, Luna, plunged in worth final month, sparking a unload and igniting a sequence response that has pushed some main establishments within the crypto sector into extreme difficulties. TerraUSD was meant to be pegged 1:1 to the US greenback.

An official at South Korea’s Supreme Prosecutors’ Workplace, who declined to be named as is customary in South Korea, stated a number of Terraform Labs employees had been placed on a no-fly record.

He added that he couldn’t give additional particulars till after investigations had wrapped up.

Losses related to the stablecoin additionally contributed to difficulties at US-based crypto lender Celsius, which suspended withdrawals this month, and Singapore-based crypto hedge fund Three Arrows Capital, which is contemplating choices together with the sale of belongings and a bailout by one other agency.

Bitcoin, the world’s largest cryptocurrency, is buying and selling at about $20,000, having misplaced about half of its worth since early Could, when the issues with TerraUSD grew to become obvious.

Terraform Labs didn’t instantly reply to an emailed request for remark.

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