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

South Korea’s top financial regulators have launched an emergency investigation into the collapse of cryptocurrency LUNA and UST Stablecoin. Authorities have asked domestic cryptocurrency exchanges to provide information regarding the transactions and investors of the two coins.

South Korea’s emergency investigation into LUNA, UST

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

Last week, UST lost its peg to the U.S. dollar, causing its price and the price of terra (LUNA) to begin a free fall. As of this writing, the price of UST is less than $0.09, and LUNA is almost worthless.

South Korea’s top financial regulators, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), have asked local operators of cryptocurrency exchanges to share information regarding UST and LUNA, sources told the news outlet.

An official at one local cryptocurrency exchange operator said:

Last week, financial authorities requested data on the number of transactions and investors and assessed the exchanges’ respective measures.

“I think they did it to develop measures to minimize future damage to investors,” said an exchange spokesman.

The information requested by authorities includes trading volumes, closing prices and the number of investors involved, the publication notes, adding that regulators have also asked exchange operators to provide their countermeasures to the recent cryptocurrency market collapse and an analysis of why the collapse occurred.

UST and LUNA were invented by Kwon Do Hyun (aka Do Kwon), a South Korean citizen. His company Terraform Labs is registered in Singapore. After the collapse of these two cryptocurrencies, Kwon developed several plans to revive the coins, but so far none of them have worked.

Kwon’s wife went to the police after an unknown man broke into their apartment in South Korea. According to media reports, the man was later identified as an investor who lost about $2 million in the LUNA collapse.

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