Several employees of Terraform labs, the South Korean company behind the stablecoin TerraUSD, which crashed last month and roiled cryptocurrency markets, are barred from leaving the country, according to prosecutors.
Last month, the value of TerraUSD’s paired token, Luna, plummeted, sparking a sell-off and igniting a chain reaction that has put some major institutions in the crypto sector in serious trouble. TerraUSD was supposed to be pegged to the US dollar 1:1.
Multiple Terraform Labs employees have been placed on a no-fly list, according to an official at South Korea’s Supreme Prosecutors’ Office who refused to be named as is customary in South Korea.
He also stated that he would not be able to provide any additional information until the investigations were completed. We are not aware of the details of the announced ban, a Terraform Labs spokesperson said in a statement.
Losses linked with the stablecoin exacerbated problems at US-based crypto lender Celsius, which halted withdrawals earlier this month, and Singapore-based crypto hedge fund Three Arrows Capital, which is viewing options such as asset sales and a bailout by another firm.
Bitcoin, the world’s largest cryptocurrency, is currently trading at around $20,000, having lost roughly half of its value since early May, when TerraUSD’s problems became apparent.
