South Korea bans Terraform Labs employees over collapse

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South Korea bans Terraform Labs employees over collapse

Several employees at South Korea-based Terraform labs, the company behind the stable coin TerraUSD, which collapsed last month and roiled criptocurrency markets, can't leave the country, prosecutors said.

The paired token, Luna, plunged in value last month, causing a sell off and causing a chain reaction that has pushed some major institutions into serious difficulties, according to a chain reaction by TerraUSD. An official at South Korea's Supreme Prosecutors' Office, who didn't say anything, said multiple Terraform Labs staff had been put on a no-fly list.

He said that he could not give further details until after investigations had been completed.

A spokesman for Terraform Labs said in a statement that they are not aware of the details of the ban. Losses associated with the stable coin have also contributed to difficulties at U.S. based criptocurrency lender Celsius, which suspended withdrawals this month, and Singapore-based criptocurrency hedge fund Three Arrows Capital, considering options including the sale of assets and a bailout by another firm.

The world's largest coin,Bitcoin, is trading at $20,000, having lost half of its value since early May when problems with TerraUSD became apparent.