The governments of the United States and South Korea have agreed to investigate the collapse of former top-10 crypto project Terra (LUNA) for potential financial crimes. This joint effort signifies a major step in holding those responsible for the TerraUSD (UST) and LUNA crash accountable.

USA and Korea Join Forces to Investigate Terra (LUNA) Collapse

Following the devastating crash of TerraUSD and its sister token LUNA, which wiped out billions of dollars in investor wealth, South Korean authorities began investigating Terra parent company Terraform Labs. Now, the investigation is expanding with the full cooperation of US agencies.

Korean Justice Minister Han Dong-hoon met with U.S. prosecution officials during a visit to New York and discussed ways to improve cooperation in investigating financial crimes, with the Terra/LUNA case a key point of discussion. Han Dong-hoon is actively involved in the investigation, ensuring a thorough and coordinated approach.

The American securities regulatory body has secured regulatory approval to tie up with South Korean enforcement agencies to investigate the Terra crypto fraud. This partnership strengthens the investigation by leveraging expertise and resources from both countries.

Terraform Labs is the developer of the now-defunct TerraUSD stablecoin and LUNA cryptocurrency. The joint US-Korea investigation will focus on potential securities violations, fraud, and other financial irregularities related to Terraform Labs' activities.

This collaborative investigation between the USA and Korea highlights the growing international cooperation in addressing the challenges posed by the rapidly evolving cryptocurrency landscape. The outcome of this investigation could set a precedent for future cross-border investigations of crypto-related financial crimes.