A number of staff of South Korea-based Terraform labs, the corporate behind the stablecoin TerraUSD, which collapsed final month and roiled cryptocurrency markets, can’t depart the nation, prosecutors mentioned.
TerraUSD’s paired token, Luna, plunged in worth final month, sparking a unload and igniting a sequence response that has pushed some main establishments within the crypto sector into extreme difficulties. TerraUSD was meant to be pegged 1:1 to the U.S. greenback.
An official at South Korea’s Supreme Prosecutors’ Workplace, who declined to be named as is customary in South Korea, mentioned a number of Terraform Labs employees had been placed on a no-fly listing.
He added that he couldn’t give additional particulars till after investigations had wrapped up. A Terraform Labs spokesperson mentioned in an announcement, “We aren’t conscious of the main points of the reported ban.”
Losses related to the stablecoin additionally contributed to difficulties at US-based crypto lender Celsius, which suspended withdrawals this month, and Singapore-based crypto hedge fund Three Arrows Capital, which is contemplating choices together with the sale of property and a bailout by one other agency.
Bitcoin, the world’s largest cryptocurrency, is buying and selling at about $20,000, having misplaced about half of its worth since early Could, when the issues with TerraUSD turned obvious.