The South Korean ruling party held an emergency meeting to address the issue regarding the collapse of the Korean virtual assets LUNA and UST. Thereby, summoned the representatives of the five major virtual asset exchanges to investigate further.
It is expected that the representatives of the exchange will be held accountable for the damage to investors caused by the recent LUNA crash and delisting. With this, the Korean National Assembly is taking the initiative to regulate punishment in this matter.
As per the political circles and the virtual asset industry’s statement on 23rd March, the power of the people will be held jointly by the Party Policy committee and the Virtual Asset Special Committee on the 24th March.
Upbit, Bithumb, Coinone, Korbit, and Gopax, including CEO Lee Seok-woo, Dunamu, and the representatives of the five major exchanges were called.
An official from the ruling party said that Lee Seok-woo, the current CEO, has decided to attend and other representatives of the four major crypto exchanges are expected to attend as well.
The National Assembly is expected to hold the exchanges that dealt with LUNA transactions accountable for investor protection in relation to the LUNA incident.
Chairman of the People’s Strength Virtual Assets Special Committee Yoon Chang-hyeon said on Facebook – “We will check the exchange’s investor protection measures.”
As the price of a typical Korean virtual asset, Luna, fell by more than 99.999% within a week, volatility increased. Consequently, Binance, the world’s largest virtual asset exchange, announced to suspend some spot trading of Luna.
Reportedly, South Korean police have also requested the sequestering of funds related to the Luna Foundation Guard. On May 23rd, 2022, Korean authorities sent a request to top crypto exchanges in the country to prevent funds from being withdrawn.
Specifically, the Seoul Metropolitan Police Agency asked to prohibit the Luna Foundation Guard from taking action. However, this request is not a demand and is not enforceable by law. Exchanges can choose how they would like to respond but it is not yet known how they might react.
The Luna-Terra coin, which had a market cap of $18 billion at one time, plummeted dramatically to a piece of tissue paper overnight. This incident ultimately led South Korean LUNA and UST investors to file a lawsuit against Kwon Do-hyung, the CEO of Terra.
Although the request to the crypto exchanges and the Do Kwon investigation are not linked. The actions by the National Assembly and the Korean authorities make it clear that Korea will take necessary steps to get to the bottom of the Terra ecosystem collapse.
