Data on the Terra Luna Crypto Meltdown Will be Shared Between the US and South Korea

The most recent cross-border collaboration will concentrate on investigating financial crimes such as cryptocurrency thefts.

It has become imperative for authorities throughout the world to focus their attention on stablecoins following Terra‘s historic tragedy. There has been a recent claim that Han Dong-hoon, South Korea’s Justice Minister, has met with U.S. officials to discuss possible collaboration in the battle against financial and security fraud.

Ties to Cryptocurrency Regulations are Strengthening

During a visit to New York City on Tuesday, Han Dong-hoon met with top officials from the US Securities and Commodities Task Force and expressed his support for a joint probe with US authorities into the circumstances surrounding Terra’s collapse.

It is the goal of the alliance to increase information flow across borders and to bolster the investigation of crypto and other financial crimes. Terra, the project under investigation in both countries, is once again in the spotlight:

“As part of the agreement, the two sides agreed to exchange their newest investigation data on ongoing crypto cases, including TerraUSD and Luna’s high-profile breakdown.”

The legal authorities around the world are looking into Terra’s demise. South Korean authorities have opened an investigation into the squad, looking at fraud and market manipulation charges, last month. According to reports, a major member of the group has even been barred from leaving the country.

DeFi’s Terra-based Mirror Protocol platform is now the subject of an inquiry by the US Securities and Exchange Commission (SEC). By allowing investors to trade tokenized replicas of major stocks like Tesla and Airbnb, the regulatory agency feared that the protocol could have broken the Securities Act of 1933.

Apart from that, the agency also investigated whether Terra’s co-founder and CEO, Do Kwon, had broken any investor protection requirements by making unwarranted public promotion of UST and Luna before their demise.

Partnerships with Other Countries

Earlier this month, the United Kingdom and the United States issued an agreement to improve cross-jurisdictional regulatory outcomes for digital assets. Stablecoins and crypto-asset trading and lending platforms were cited by both governments as sources of concern due to the general market slump, which has highlighted problems rooted in a few problematic initiatives.

This was a response to the collapse of several crypto businesses during the bull market, many of which had over leveraged their current assets. Some crypto investors are being forced to declare bankruptcy or claim insolvency as their debts mount and their holdings are liquidated by the bear market.