KEY POINTS

  • Old and new TFL employees are prohibited from leaving South Korea
  • Kwon is no longer in South Korea and is believed to be in Singapore these days
  • LUNA was trading 1.83 percent at $2.10

Terraform Labs' woes continue to pile up as some of its employees received a departure ban from South Korean authorities, prohibiting them from leaving the country, which may have been triggered by recent allegations from a whistle-blower.

Do Kwon, the co-founder and CEO of Terraform Labs, is no longer in South Korea and rumors have it that he is currently in Singapore. It appears that the South Korean prosecutors do not want any more TFL employees leaving the country.

The Seoul Southern District Prosecutor's Office securities crime team, which leads the Terra collapse investigation, imposed a departure ban on the key developers and employees of the company, local reports reported. The said ban was reportedly imposed earlier without notifying employees subject to investigation to prevent them from fleeing the country or from destroying evidence.

What Are Terra Stablecoins Terra released a set of explainer videos in September 2020 in partnership with CoinMarketCap Photo: Terra Official YouTube Account

This has been confirmed by one of the employees of Terraform Labs. "Stop asking me why I couldn't make it to NYC frens, this is why: the Korean government imposed an exit ban for all ex-@terra_money employees today," Daniel Hong said in a tweet. 

He shared that even former employees who left the company in 2019 and 2020 are also banned from leaving South Korea and none of them were given notice.

"None of us were notified of this at all; when I found out about this, the South Korean prosecution told me they usually don't notify people of this because they might destroy evidence and/or leave the country beforehand," he added. Apparently, Hong is not the only one.

The Southern District Prosecutor’s Office’s Joint Financial and Securities Crime Investigation Team has also banned a key Terra designer from leaving the country. Apparently, this key member divulged to several media outlets in South Korea that Kwon once told them about making enough money to buy an island.

The said key TFL employee was also the one who previously alleged that Kwon was secretly selling crypto to institutions to raise a large amount of money. The government's decision to prevent the departure of several employees could be the commencement of a full-scale investigation, which could include searches and seizures.

Amid the chaos, investors are also asking about Kwon's whereabouts. LUNA was trading 1.83 percent at $2.10 with a 24-hour volume of $162,106,240 as of 5:49 a.m. ET on Tuesday, according to the latest data from CoinMarketCap.