Terraform Labs employees are reportedly unable to leave South Korea because the country’s prosecutors have placed a travel ban on the project’s core developers.
An investigation team from the Seoul Southern District Prosecutor’s Office put a travel ban on crucial Terraform Labs team members on Monday, according to Korean media outlet JTBC. Authorities enacted the restriction to prevent key company officials from leaving abroad to avoid further inquiry.
Former Terraform Labs employees also received exit bans
Terra developer Daniel Hong revealed in a tweet that the government has also barred former Terraform Labs employees from leaving the company. According to Hong, no employees were notified to avoid evidence destruction as the investigation continues.
The report also stated that Terraform Labs CEO Do Kwon, a key figure in the investigation, is currently residing outside of the country in Singapore. As a result, the prosecution may take steps such as suspending Kwon’s passport before conducting a more thorough investigation into him.
Hong was also disappointed with the restriction, claiming that it demonstrates that staff are being treated like criminals, which he called “unacceptable,” and that employees who would have been inclined to cooperate may have altered their minds due to the ban.
Grim Reapers tasked to investigate Terra collapse
South Korea resurrected the Grim Reapers of Yeouido, a well-known financial crimes investigation force, in May to look into Terra’s collapse. The squad will focus on prosecuting fraud and unlawful trading strategies and will consist of various regulators.
Meanwhile, exchanges in Korea have formed a new system to ensure regulatory compliance and make joint decisions to avoid repeating Terra’s situation. The emergency system will be activated within 24 hours if a similar disaster occurs.