The Seoul Metropolitan Police are asking crypto exchanges to freeze assets connected to the Luna Foundation Guard, an organization that supports the Terra ecosystem.

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According to a report from local media outlet Naver, the Seoul Metropolitan Police Agency's 1st Cybercrime Investigation Unit recently requested exchanges operating in Korea to "freeze" LFG’s accounts to prevent them from withdrawing corporate funds.

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The police claim that clues have been discovered that may link the organization to embezzlement. It’s important to note, however, that the exchanges are not legally required to freeze the funds, so it’s up to them if they will comply with the police’s request. 

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Since the collapse of the Terra ecosystem’s algorithmic stablecoin TerraUSD and its native cryptocurrency LUNA, Terra Labs CEO Do Kwon has remained under suspicion in multiple investigations conducted by Korean authorities.

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Over the weekend, reports emerged claiming that South Korea’s National Tax Service recently ordered Terra Labs, Do Kwon, and other executives to pay a 100 billion won ($78 million) fine for tax evasion penalties. Do Kwon later denied the allegation claiming that they have “no outstanding tax liabilities in Korea.”

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