Turkish Crypto Exchange Thodex CEO Faruk Özer Sentenced to 11,196 Years in Prison for Collapse
DeFi and Credit Risk
SEC Finds 'No Grounds' to Deny Conversion of Bitcoin ETF, Grayscale Says
Emergency Investigation into LUNA and UST in South Korea
Following the collapse of the terrausd stablecoin (UST) and terra (LUNA) cryptocurrency, Yonhap News reported Tuesday that South Korea has opened a "emergency" inquiry into local crypto exchange operators.
Last week, UST's peg to the US dollar was broken, causing its price and that of terra (LUNA) to plummet. UST is currently selling for less than $0.09, while LUNA is nearly worthless.
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), two of South Korea's major financial authorities, have ordered local cryptocurrency exchange providers to submit information on UST and LUNA, according to sources.
=====
According to a representative from a local crypto exchange,
"Last week, financial regulators requested data on transaction volumes and investors, as well as an assessment of the exchanges' appropriate procedures."
"I believe they did it to devise steps to mitigate future investor harm," the exchange official added.
The authorities have requested trading volumes, closing prices, and the number of relevant investors, according to the publication, which also stated that the exchange operators have been asked to provide their countermeasures to the recent crypto market crash as well as analyses of the cause of the crash.
Kwon Do-hyung (aka Do Kwon), a South Korean citizen, invented UST and LUNA. Terraform Labs, his startup, is based in Singapore. Kwon has come up with a few proposals to resurrect the two cryptocurrencies after their collapse, but none of them have worked so yet.
After an unidentified guy trespassed into their apartment building in South Korea, Kwon's wife allegedly requested police protection. The individual was later recognized as an investor who lost almost $2 million in LUNA's bankruptcy, according to media sources.
