To Kwon with a ban on leaving the country? The creator of Luna under the scrutiny of investigators

After spectacular the fall of the Luna cryptocurrency and most of all the related UST stablecoin, which did not turn out at all with stablecoin, its creators have more problems. South Korean authorities issued an exit ban on one of the "Main designers" companies. It is unofficially known that this designer is to be the originator and founder of the project himself - do kwon. 

The fact was reported by a South Korean media agency, but did not provide any names or even initials. This is the result of the activities of the joint financial and securities-related crime investigation team at the Southern District Prosecutor's Office in Seoul. The team has banned key designer Terra from leaving the country. However, he continues to research Terraform Labs, its employees and founding members after the collapse of TerraUSD (UST) and the LUNC token (now Luna Classic).

Anyone testifying against Do Kwon?

The media in South Korea also receives more and more leaks from the investigation itself. Portals cite anonymously "Key member"that says that Until Kwon informed key employees of the company that he had earned enough money to buy the island. The same person claims that Do Kwon was secretly selling cryptocurrency to institutions in order to raise large funds.

Now it is the turn of the prosecutor's office, which is examining whether the money funds have been used for the so-called "Market price adjustment". This is a euphemism that simply means artificially inflating the price of a token. Investigators assume the possibility that Luna's market success was not at all marketable. And from here it is a step to the conclusion that the big fish from the environment knew about it and decided to "punish" its creator.

Ban on leaving the country

Due to the emerging evidence, a decision was made to prevent the creator of the Luna ecosystem from leaving the country. This, however, opens the door to further activities of the services: searches as well as confiscation of property. 

However, the statement of the Ministry of Justice is very laconic and it is difficult to infer anything from it:

"We cannot confirm that the departure ban is related to the confidentiality of the investigation."

Luna fell from an attack from within?

At the same time, she appeared information from Uppsala Securitywhich deals with blockchain security. According to the researchers, the collapse of the ecosystem that caused billions in losses could be an internal job. They claim that the portfolio of a potential attacker may have been linked to Terraform or other related entities.

Ultimately, rumors of Wall Street bigwigs behind the fall were dispelled. Currently, Terraform's internal wallets are primarily being investigated.

Aftermath of Luna's Fall

The destruction of the Luna ecosystem not only triggered a deep discount across the board cryptocurrency market. It also caused a flood of new regulations on the part of supervisory authorities. 

For example US Securities and Exchange Commission (SEC) recently launched a further investigation into Terraform Labs to establish whether the tokens in question were in fact unregistered securities. 

Meanwhile, South Korean authorities have been forced to form a committee dedicated solely to the strict regulation and oversight of the crypto industry pending approval of the Digital Assets Framework Act and the creation of a government agency to avoid another recent meltdown. It is a common belief that this was misleading investors, but according to many it was a deliberate action. 

The new Luna has any chances?

Meanwhile, Do Kwon persists in persuading that the project may still be revived. He even created a new LUNA token, so we now have two on the market, because the original one has changed its name to Luna Classic. Luna 2.0 however, there are no best opinions yet.

"Luna 2 was never meant to survive. It was simply a mechanism for some who had invested heavily and wanted to make up for at least some of their losses at the expense of the new hype money. I see no reason why its price should ever increase " - says Mati Greenspan, CEO of research and investment firm Quantum Economics.