S. Korea wishes to penalize violators of Terra and illegal transactions before the implementation of the Digital Asset Law

Published on:

Last Updated on July 28, 2022 by Bitfinsider

In connection with the Terra-LUNA collapse and the accusations of fraud against Do Kwon and Daniel Shin, South Korea’s investigation team has finished searching and seizing cryptocurrency enterprises. To issue subpoenas, prosecutors will review the transaction records that have been gathered as well as other evidence materials.

In the meantime, in October, work reports on the “Digital Asset Basic Act” were presented to draft law by the cryptocurrency-friendly South Korean financial regulators. In addition, before enacting legislation, the government chooses to punish individuals who engage in money laundering and unlawful business.

Prior to the reform of digital assets, South Korea plans harsh penalties

In addition to looking into the catastrophe’s perpetrators, South Korea is tightening crypto legislation to avoid disasters like the Terra-LUNA crash.

The week-long search and seizure conducted by the Seoul Southern District Prosecutor’s Office of the Financial Securities Crimes Joint Investigation Team is now complete, according to a local news source on July 28. By conducting raids at 15 businesses, including 7 cryptocurrency exchanges, as well as Daniel Shin’s residence, the prosecution gathered evidence pertaining to TerraForm Labs, Do Kwon, and these individuals.

In order to bring Do Kwon, Daniel Shin, and associates on charges of fraud, money laundering, and tax evasion, prosecutors will now examine transaction records and forensic evidence.

Do Kwon has already received a “notification upon arrival” order from the Ministry of Justice, along with “travel ban” warnings for Daniel Shin and other executives. Additionally, the prospect of sending a red alert to Interpol to extradite Do Kwon is being discussed by the prosecution. Do Kwon may be hiding in Singapore, according to authorities.

According to local reports, the Financial Supervisory Service and the Financial Services Commission of South Korea have filed work plans to create the “Digital Asset Basic Act” in October. Based on the U.S. examination, South Korea will also classify digital assets as securities or non-security.

The government intends to punish those responsible for the Terra crash and unlawful transactions before the Digital Asset Basic Act is finished.

South Korean regulators find $3.1 billion in transactions related to cryptocurrencies

The commercial banks Woori Bank and Shinhan Bank were exploited for illegitimate use of the digital asset, and the South Korean regulators are looking into foreign exchange transactions totaling $3.1 billion at both institutions.

The transactions, according to the regulators, are connected to cryptocurrency money laundering. Banks have been ordered by the Financial Supervisory Service to report foreign currency transactions that took place between January 2021 and June 2022 by the end of the month.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked.

To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor


Are you new to investing and would like to find out more about investments and cryptocurrency? If you know nothing about a topic and want to become an expert on it, one fool proof way to start is to read good books about the topic.

If you read one book about a topic, you will be able to share knowledge or discuss the topic at an elementary level with almost everyone.

Read three books and you will likely know more than the majority of people and will be able to discuss the topic at an intermediate to expert level.

  1. The Intelligent Investor by Benjamin Graham
  2. Crypto Investing Guide: How to Invest in Bitcoin, DeFi, NFTs and More by Ian Balina
  3. The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology That Powers Them by Antony Lewis

Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.

Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

Related