South Korean prosecutors ban Terraform Labs employees from exiting the country: Report


Terraform Labs employees are reportedly unable to depart South Korea attributable to the nation’s prosecutors imposing a departure ban on key builders of the challenge.

On Monday, Korean media outlet JTBC reported that an investigation workforce from the Seoul Southern District Prosecutor’s Office imposed a journey ban on key workforce members of Terraform Labs. The ban was put into place to get rid of the chance of key officers inside the firm fleeing overseas to keep away from additional investigation.

The report additionally highlighted that Terraform Labs CEO Do Kwon, who’s a key determine in the investigation, is at the moment residing in Singapore, which is outdoors of the nation. Because of this, the prosecution could take measures reminiscent of invalidating Kwon’s passport earlier than launching a extra complete investigation into him.

In a tweet, Terra developer Daniel Hong shared that even former Terraform Labs employees have acquired an exit ban from the authorities. According to Hong, none of the employees had been notified to keep away from any chance of the destruction of proof as the investigation continues.


Hong additionally expressed disappointment with the ban, saying it exhibits that employees are being handled as criminals, which he described as “unacceptable.” The developer famous that employees who might need been prepared to cooperate could have modified their minds due to the ban.

Related: Appeals courtroom guidelines Do Kwon, Terraform Labs should heed SEC subpoena served in September

In May, a well-known monetary crimes investigation unit dubbed the “Grim Reapers of Yeouido” was revived by South Korea to analyze the collapse of Terra. The workforce consists of varied regulators and can concentrate on prosecuting fraud and unlawful buying and selling schemes.

Meanwhile, exchanges in Korea have fashioned a brand new system that will guarantee regulatory compliance and make united selections to stop one other scenario like what occurred with Terra. The emergency system might be activated inside 24 hours if an identical fiasco happens.

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