South Korea has reportedly prohibited current and former developers of Terra from leaving the country amid ongoing investigation over the notorious collapse of the ecosystem.
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According to a local news outlet JTBC News, the Seoul Southern District Prosecutor Office's Joint Financial and Securities Crime Investigation Team has barred several top executives of Terraform Labs from leaving South Korea.
The report notes that Terra Founder Do Kwon was allegedly aware of his wrongdoing as he was boasting he had "made enough money to buy an island" while Terra's employees say that Kwon didn't get any official payment from the firm.
In May, Korean prosecutors launched an investigation into the Terra crash as the local financial regulators were trying to find out if there were intentional price manipulations behind the collapse.
According to reports, one of the ex-employees told the authorities that some specialists at Terraform Labs had voiced their concerns about the TerraUSD (UST) design architecture from the very beginning. Unnamed employees said they alarmed Terraform Labs CEO Do Kwon about issues, but he declined to fix them and continued his work on the stablecoin.
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