Both countries have agreed to share relevant information about all ongoing investigations, including the Terra incident.
South Korean Justice Minister Han Dong-hoon recently met with United States financial regulators in New York in a bid for both countries to collaborate and investigate cryptocurrency-related crimes.
Local news outlet Yonhap News Agency noted in a report that the meeting, which took place on Tuesday this week, was attended by Dong-hoon, Scott Hartman, chief of the Securities and Commodities Fraud Task Force, and Andrea M. Griswold, co-chief of the Securities and Commodities Task Force.
Terra Incident Tops the List of Crypto Crimes
Both U.S. officials are from the Attorney’s Office for the Southern District of New York. The main agenda of the meeting was centered around strengthening the relationship between authorities in Korea and the United States which would lead to the exchange of essential information in the fight against financial crimes in the crypto space.
The authorities reached an agreement to exchange data related to their latest investigations, including information about the collapse of the Terra ecosystem.
Massive Investigations Trail Terra’s Collapse
TerraForm Labs, the company behind the Terra cryptocurrency project, has been under the watchful eye of relevant authorities since May.
Recall that Terra’s flagship algorithmic stablecoin, UST, lost its peg to the dollar in early May, which also led to the collapse of its sister token LUNA.
After the Terra collapse incident, financial authorities launched a series of investigations to unravel the actual cause of the issue.
The development prompted South Korea to rebirth a special crime unit to lead the investigation.
It is worth noting that South Korea is focused on investigating fraud charges surrounding the Terra project that contributed to the massive crash of UST and LUNA.
On the other hand, authorities from the United States, specifically from the Securities and Exchange Commission (SEC), are investigating whether Terra breached U.S. securities law via the marketing of TerraUSD and LUNA before the tokens collapse.
So far, several reports have emerged indicting Do Kwon, the founder of Terra and the company’s top executives, for being the major cause of Terra’s collapse.
However, Kwon has denied all reports, claiming they are part of efforts by the media to cause further damage to TFL’s reputation.
Surprisingly The world-famous Hacking group ‘Anonymous’ also Vowed to Expose Terra’s Do Kwon’s Shady Dealings.