Korea and the Us Concur to Exchange Terra (LUNA) Investigation Data

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Han Dong-hoon, the justice minister for South Korea, recently visited New York to discuss various ways that the two countries can cooperate on investigations into financial crimes, particularly those involving cryptocurrencies, including Terra (LUNA).

On Tuesday, according to a local daily, Hoon met with Scott Hartman, head of the Securities and Commodities Fraud Task Force at the same office, and Andrea M. Griswold, co-chief of the Securities and Commodities Task Force.

According to a local daily, the two sides talked about improving communication and cooperation to ensure prompt response to the rising number of securities frauds connected to the market for digital assets. Regarding Terra (LUNA), a cryptocurrency project under investigation in both countries, it is said that the two sides have agreed to share their most recent investigation data.

Read also: Investors Are Getting Interesting in Old Terra Tokens

Investigation Into the Terra (Luna) Crisis

Both nations have looked into the $40 billion Terra ecosystem crash from a legal perspective. Do Kwon, a co-founder of Terra is the subject of a recent U.S. investigation. South Korean prosecutors are investigating several allegations, including fraud, market manipulation, and tax evasion.

Since regulators have recently turned their attention to cryptocurrency-related crimes, cooperation between the two countries may not be the first of many. Regarding cryptocurrency regulations, South Korea has emerged as one of the strictest countries, enforcing stringent know your customer (KYC) and anti-money laundering (AML) standards.

The Terra saga has also prompted Korean lawmakers to create a new committee to oversee cryptocurrency projects and evaluate those that are listed on cryptocurrency exchanges. Numerous experts predicted that the failure of Terra-USD (UST) would influence regulators to prefer algorithmic stablecoins over centralized ones.

Related article: Cardano Creator: The Collapse of Terra (LUNA) Has Caused a Change in Cardano’s Vasil Upgrade

The lack of clear crypto regulations makes it more challenging and complex to track down and prosecute these crimes, which frequently involve cross-border transactions and money laundering. For instance, in 2019, a Dutch university paid a ransom of $200,000 in Bitcoin (BTC). The investigators could locate one wallet in Ukraine and eventually had to work with the local authorities to recover the money, which had been paid nearly three years earlier.