LFG Funds to be Frozen on Exchanges

Key Takeaways: 

  • LFG foundation may soon not be able to withdraw funds from crypto exchanges.
  • Investors have lost confidence in Luna and have filed reports against Do Kwon.

Since Luna’s downfall, Terraform Labs and Luna Foundation Guard have been facing backlashes. Recently, the former was fined $78 million by the National Tax Service, as the committee held the organization responsible for the fiasco

After getting delisted from several exchanges, Terra Luna faces another blow as police request exchanges to freeze funds of its supporting company, Luna Foundation Guard (LFG). According to local reports, the authorities are suspecting that funds that were related to the recent financial fraud have been deposited into the accounts of Luna Foundation Guard. Therefore, The Seoul Metropolitan Police Agency’s first Cybercrime Investigation Unit has requested cryptocurrency exchanges to not allow the company to withdraw any amount. 

Recently, investors of ‘Terra’ and ‘Luna’, filed a report against Do Kwon claiming investment fraud and referred to the token as a “Ponzi scam.”

Lfg Funds To Be Frozen On Exchanges
Investors filed a report against Do Kwon claiming investment fraud.

However, reportedly, the police’s request is not in connection with the case filed. Exchanges are not obliged by the law to obey the request as the authorities are yet to reveal the details of the investigation. 

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Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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