Korean Police Freeze Luna Foundation Guard Assets Amid Embezzlement Suspicions

The fallout from the TerraUSD (UST-USD) stablecoin collapse continues as South Korean authorities have asked crypto exchanges to freeze assets linked to the Luna Foundation Guard (LFG). This action, first reported by KBS, highlights the increasing scrutiny facing LFG following the devastating events of early May.

Multiple reports confirm that the South Korean police have reportedly taken measures to freeze the Luna Foundation Guard’s ( LFG ) money. The South Korean police have requested crypto exchanges to freeze the Luna Foundation Guard's accounts to prevent fund transfers. Seoul Metropolitan Police Agency has issued a request to five crypto exchange companies to freeze Terra’s Luna Foundation Guard’s assets. They reportedly took action after a slew of controversies brought the LUNA ecosystem down. The LFG supports Terra cryptocurrency.

The primary concern driving this action is the suspicion of embezzlement. Seoul police are seeking to ban the entity from withdrawing crypto amid suspicions of embezzlement. This freeze aims to prevent the LFG from potentially moving assets while investigations are underway. The Seoul Metropolitan Police have taken measures to freeze assets of the Luna Foundation Guard (LFG).

The law enforcement authorities in South Korea are taking action against the Luna Foundation Guard (LFG) by seeking to freeze all assets tied to the non-profit group. This move underscores the gravity of the situation and the potential legal ramifications for those involved in the LUNA/UST collapse. Crypto exchanges in South Korea have been issued notices from police requesting the sequestering of funds related to the Luna Foundation Guard. The unfolding situation is being closely monitored by investors and regulators worldwide as the investigation continues.