Stablecoin News

Yet Another Probe Into Crypto Firms In S. Korea Over Terra Collapse

The aftermath of the Terra network crash saw a big shift in regulatory action in the crypto industry.
Published by
Yet Another Probe Into Crypto Firms In S. Korea Over Terra Collapse

The aftermath of the Terra network crash saw a big shift in regulatory action in the crypto industry. With several countries in the process of tightening the noose against crypto wrongdoings, the action appears to be coming sooner that it was thought, which started with South Korea Terra probe.

Advertisement

South Korea Targets Crypto Payment Firms

In a latest, South Korea’s Financial Supervisory Service (FSS) launched a probe into several companies offering crypto payment services. The inspection largely targeted the country’s payment gateway companies, according to a report by Smart Times.

This follows an investigation into the Terra crash last month, which had in a matter of days wiped out billions of dollars of investor money. The Financial Intelligence Unit, a part of FSS, revealed that South Korea had 2,80,000 investors holding nearly 80 billion tokens as of May 24.

Advertisement

Crypto Firms Asked To Report Compliance

The FSS had previously instructed as many as 157 electronic payment service providers to report crypto-related services. The service providers were also asked to report on their future plans in the industry, besides their digital asset holdings. It was found that six local payment gateway firms were holding digital assets, as per a report by FSS.

Earlier this week, reports suggested that the country had intensified its probe into the Terra crash episode. Accordingly, prosecutors had summoned employees of Terraform Labs in the South Korea Terra probe.

Also, the South Korean authorities, on suspicion of embezzlement of funds by the Terra team, took further action to protect funds. They requested crypto exchanges to freeze Luna Foundation Guard from withdrawing corporate funds from accounts held on the exchanges. Prior to that, the country’s tax authorities charged Terra CEO Do Kwon with over $78.4 million in unpaid taxes.

On Saturday, Terra launched the Terra Bridge V2 on the mainnet using Cosmos IBC and Axelar Network. The bridge will allow users to perform cross-chain transfer of tokens between Terra 2.0, Ethereum, Osmosis, Secret, Cosmos, and Juno.

Advertisement

Share
Anvesh Reddy

Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at anvesh@coingape.com or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Fed’s John Williams Backs More Rate Cuts This Year Amid Labor Market Concerns

New York Fed President John Williams has shown his support for additional Fed rate cuts…

October 9, 2025
  • Bitcoin News

Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy

The Bitcoin price is up today, after a significant drop in the last 24 hours.…

October 9, 2025
  • 24/7 Cryptocurrency News

Flare Network Surpasses $43M in Bridged XRP, Expert Predicts Breakout to New ATH

Flare Network has recorded over $43 million worth of XRP now bridged onto its blockchain.…

October 9, 2025
  • Bitcoin News

Bitcoin, Ethereum Drag Broader Crypto Market Lower Ahead of FED Powell Speech

Bitcoin and Ethereum are dragging lower amid massive volatility ahead of Fed Chair Jerome Powell's…

October 9, 2025
  • 24/7 Cryptocurrency News

Breaking: Ripple Partners With Bahrain’s Fintech Bay in Push for RLUSD Adoption

Ripple has announced a new partnership with Bahrain’s Fintech Bay (BFB). This initiative seeks to…

October 9, 2025
  • Altcoin News

XRP News: Why Whales Sold 440M Coins in a Month Despite ETF Launch Buzz

In a major XRP news today, whales are betting against XRP ETF launch anticipation and…

October 9, 2025