Several employees of South Korea-based Terraform labs, the company behind the stablecoin TerraUSD, which collapsed last month and rocked cryptocurrency markets, are unable to leave the country, prosecutors said.
TerraUSD’s paired token, Luna, fell in value last month, triggering a sell-off and triggering a chain reaction that has sent some major crypto sector institutions into serious trouble. TerraUSD was intended to be pegged 1:1 to the US dollar.
A South Korean prosecutor’s office, who declined to be named as usual in South Korea, said several Terraform Labs employees had been placed on a no-fly list.
He added that he could not provide further details until after the investigation was completed. A Terraform Labs spokesperson said in a statement, “We are not aware of the details of the reported ban.”
Losses related to the stablecoin also added to problems at US-based cryptocurrency lender Celsius, which suspended withdrawals this month, and Singapore-based crypto hedge fund Three Arrows Capital, which is considering options including asset sales and a rescue operation by another company.
Bitcoin, the world’s largest cryptocurrency, trades at about $20,000 and has lost about half of its value since early May, when the TerraUSD problems came to light.
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