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

  • News

Uphold Joins Gemini, Relaunches XRP Debit Card Following SEC Lawsuit Resolution

Uphold has relaunched its XRP Debit Card across the United States following the resolution of…

October 30, 2025
  • Altcoin News

Breaking: XRP Treasury Evernorth Debuts on Nasdaq Under XRPN Ticker After $1B Token Purchase

Evernorth Holdings, a Ripple-backed XRP treasury company, has officially made its debut on Nasdaq under…

October 30, 2025
  • News

BlockDAG Listing Rumors on Coinbase and Kraken Fuel Hype; But Analysts Urge Caution

BlockDAG, a hybrid Layer-1 project currently in its presale phase, is experiencing a surge in…

October 30, 2025
  • News

Toobit Introduces Multi-Million Dollar Shield Fund to Protect Traders Against Platform Incidents

Toobit, an award-winning global crypto exchange, has launched the Toobit Shield Fund, a $50M risk…

October 30, 2025
  • News

$1.7 Trillion T. Rowe Price Files for First U.S. Spot Shiba Inu ETF, Boosting SHIB’s Adoption

T. Rowe Price has officially filed for the Shiba Inu ETF with the U.S. SEC.…

October 30, 2025
  • Altcoin News

XRP News: Key Ripple Whale Indicator Turns Bullish After 4 Months, Price Rally Ahead?

In a major XRP news today, a key whale indicator turns bullish for Ripple's native…

October 30, 2025