LUNA FOUNDATION GUARD (LFG) ASSETS PETITIONED TO BE FROZEN BY THE KOREAN POLICE FORCE

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Coinmonks

2 min readMay 24, 2022

South Korean police authorities are taking action to lock up assets tied to the non-profit group Luna Foundation Guard, according to the country’s national broadcaster, KBS.

The publication indicates that the Seoul Metropolitan Police Agency asked multiple exchanges to block Luna Foundation Guard (LFG) from withdrawing any corporate funds.

However, the exchanges are not obliged by law to do so, meaning that whether or not those actions will be carried out, is explicitly defined, according to KBS.

The Police said that they interfered after finding clues showing that there were defalcated funds within LFG, according to the report.

Following the recent Terra meltdown, which saw the value of stablecoin TerraUSD (UST) fall below $0.10, some investors have already sued Terraform Labs founder Do Kwon.

Also in relation to the recent collapse of the Terra ecosystem, Korean legislators are meeting with representatives from five of the biggest exchanges in South Korea on Monday and Tuesday, according to Chosun Daily.

Those companies are Upbit, Bithumb, Coinone, Korbit, and Gopax, according to News PIM. They will likely have to answer to whether or not they should also be held accountable for the loss of funds by token holders.

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LUNA FOUNDATION GUARD (LFG) ASSETS PETITIONED TO BE FROZEN BY THE KOREAN POLICE FORCE

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Written by ETELL