Like Corrupts, Terraform Employees Banned Overseas By South Korean Procuratorate

South Korea bans Terroform employees. (photo: doc. pixabay)

JAKARTA - Several employees of the Terraform lab based in South Korea, are now banned from traveling abroad by the local prosecutor's office.

Terraform, the company behind stablecoin TerraUSD, which collapsed last month and rocked the cryptocurrency market, was forced to bar criminals like criminals from being questioned.

TerraUSD pair token Luna fell in value last month, sparking a sell-off and sparking a chain reaction that has pushed some of the major institutions in the crypto sector into serious trouble. Previously, the TerraUSD stablecoin was targeted to be pegged at 1:1 to the US dollar.

An official at South Korea's Supreme Prosecutors' Office, who declined to be named, said several Terraform Labs staff had been put on a no-go abroad list.

He added that he could not provide further details until the investigation into the case was completed.

"We are not aware of the details of the reported ban," a spokesperson for Terraform Labs said in a statement.

Losses associated with stablecoins have also contributed to difficulties for US-based crypto lender Celsius, which suspended withdrawals this month. Similarly, Singapore-based crypto hedge fund Three Arrows Capital is considering options including asset sales and bailouts by other companies.

When the Terra problem arose Bitcoin also experienced a massive decline in value. The world's largest cryptocurrency, trades for around $20,000, having lost about half of its value since early May.