South Korea's Yonhap News Agency reported July 6 that the U.S. and South Korean authorities have agreed to collaborate on the investigation of Terra's implosion.
South Korea's Justice Minister Han Dong-hoon met with Andrea Griswold, co-chief of the Securities and Commodities Task Force, and Scott Hartman, chief of the Securities and Commodities Fraud Task Force, at the U.S. Attorney's Office for the Southern District of New York.
The Yonhap News Agency said that the two countries agreed to share investigation data about the Terra LUNA network crash, which resulted in about $40 billion in losses.
South Korea is investigating possible fraud, tax evasion and market manipulation on the part of Terraform Labs, while the US is probing Do Kwon and whether TerraUSD has breached certain regulations.
In several countries, a crash of Terra has resulted in new criptocurrency regulation efforts. South Korea has formed a committee to review the projects listed on the criptocurrency exchanges.
There are reports that the government is working with Congress to develop new stable coin legislation that could come into effect by the end of the year.
The United Kingdom government proposed several legislative amendments for cryptocurrencies firms, including stable coin issuers. Singapore's financial regulator is considering new blanket regulations to protect retail investors.
The EU s Markets in Crypto-Assets MiCA framework seeks to impose redemption reserve requirements on stable coins to cover withdrawals as well as a threshold for daily transactions for the largest operators.