The Seoul Metropolitan Police are looking to freeze the Luna Foundation Guard's LFG company funds as the Terra LUNA USD controversy continues to unfold.
According to a report from local media outlet Naver, the police's cybercrime unit said it had requested all South Korean criptocurrencies exchanges to freeze LFG accounts in order to prevent them from withdrawing any funds.
The police said they deemed it necessary to carry out the action on the suspicion that the money had been embezzled.
See also: IS TERRA LUNA DEAD?
Since TerraUSD's UST USD de-pegging event and LUNA collapse, founder Do Kwon has been the subject of scrutiny. Last week, reports emerged that he had been ordered to pay $78 million for tax evasion in South Korea, an allegation he later denied, claiming that Terra has no outstanding tax liabilities in the country.
Another report said that the Yeouido Grim Reaper task force, a special branch of South Korea's financial crimes unit, had been reinstated to investigate the collapse of the Terra ecosystem.
Price Action: LUNA was trading at $0.0001626, down 20% over the last 24 hours, according to the data from Benzinga Pro.
The last day, the price of Bitcoin was trading at $29,200, down 3%, and the price of ether was trading at $1,983, down 2% over the same period.
See Also: Do Kwon Shares Terra LUNA Burn Address But Also Says Sending Tokens There Isn't A Good Idea