South Korea Attacks Terra by Impeding Funds and Arresting Individuals

Key Insights:

• Streamer “Chancers” was arrested for visiting Terra founder Do Kwon’s home.
• The Seoul Police Agency also asked crypto exchanges in the country to block LFG from withdrawing funds.
• LUNA and UST continued to fall to $0.0001 and $0.06, respectively.

The saga of Terra will go down as one of the most tragic stories in the history of crypto as, to date, investors continue to suffer the wrath of the crash in one or the other way.

Terra Enthusiast Arrested

Known to be a streamer by the name of Chancers, the Terra enthusiast was arrested by the South Korean authorities recently. The arrest came after the man was found to have visited the home of Terra’s founder Do Kwon.

Up until before the crash of May 9, when TerraUSD (UST) lost its peg and LUNA plummeted by 100%, Chancers, in his own words, was one of the top 1% in Korea in terms of finances. However, thanks to the crash, he is now in trouble.

His desperation due to the losses led him to Do Kwon’s house, which further landed him into trouble after South Korea’s law enforcement began searching for the man who visited the Terraform Labs’ founder.

Eventually, Chancers surrendered himself to the police. In a report from BBC, Chancers was quoted saying,

“I felt like I was going to die. I lost a lot of money in a short period of time. Around $2.4m (£1.9m) of my cryptocurrency was wiped out.”

But South Korea did not stop here. The country’s law enforcement and government agencies have been gunning to bring down Terra in every possible way.

Terra LFG Blocked

Recently as reported by the Korean Broadcasting System, the Seoul Metropolitan Police Agency asked multiple major exchanges in the country to block Terra’s Luna Foundation Guard from withdrawing any funds.

In the wake of the crash and allegations of tax evasion, Do Kwon and Terra have been in the government’s crosshairs, and this request is another step in that direction.

The authorities intend to bring Do Kwon to testify about the UST depegging, which initiated a chain reaction leading to the eventual plunge in LUNA’s value, which resulted in the loss of over $400 billion to the crypto market.

Whether or not LFG will be frozen from withdrawing is not up to law enforcement, though, since the exchanges aren’t legally bound to follow the orders of the police under the law.

Regardless, since the crash, despite Terraform Labs’ multiple strategies, LUNA and UST continue to fall on the charts, with the former now being valued at $0.00016 with a supply of 6.5 trillion LUNA and the latter trading at $0.06.