South Korean authorities are reportedly moving to freeze Luna Foundation Guard’s assets in the wake of the Terra ecosystem collapse. The Seoul Metropolitan Police have allegedly asked exchanges to prevent Luna from  withdrawing funds.

Over $10 billion worth of USDT tokens have been redeemed with the stablecoin issuer Tether over the past two weeks, following the collapse of the Terra ecosystem and amid heightened stablecoin scrutiny.

Two of Korea’s largest cryptocurrency exchanges, Bithumb and Upbit, have issued investment warnings about Litecoin after an upgrade went live on the cryptocurrency’s network allowing transactions to be sent confidentially.

Sponsored: In 2017, Invictus set out to fundamentally change the asset management industry. Invictus' officially regulated funds are now institutional-grade products with industry-leading fees and very accessible minimum requirements.

Top stories in the Crypto Roundup today:

• Korean Police Seek to Freeze Luna Foundation Guard Assets
• Tether Redemptions Top $10 Billion
• Korean Crypto Exchanges Issue Litecoin Warning Over Latest Upgrade
• Sponsored: Invictus Capital spearheads the world's first regulated and tokenised mutual fund

Korean Police Seek to Freeze Luna Foundation Guard Assets

South Korean authorities are reportedly moving to freeze Luna Foundation Guard’s assets in the wake of the Terra ecosystem collapse. The Seoul Metropolitan Police have allegedly asked exchanges to prevent Luna’ from  withdrawing funds.

Which exchanges were asked to bar Luna’s withdrawals and whether they complied isn’t clear. Terraform Labs lost $30 billion this month after UST’s fall from grace led to the collapse of the LUNA and the algorithmic stablecoin, costing investors billions.

Authorities reportedly intervened after finding clues suggesting there were embezzled funds within the Luna Foundation Guard’s wallets.

Terraform Labs CEO, Do Kwon, is now under the financial crimes microscope and is facing a tax evasion investigation by a South Korean police unit known as the “Grim Reaper” - a special joint financial and securities crime investigation unit.

Tether Redemptions Top $10 Billion

Over $10 billion worth of USDT tokens have been redeemed with the stablecoin issuer Tether over the past two weeks, following the collapse of the Terra ecosystem and amid heightened stablecoin scrutiny.

USDT’s circulating supply hit a record $83 billion earlier this month, and has now plunged to around $73 billion. The redemptions come after Tether’s USDT briefly lost its peg amid the collapse of LUNA and UST, which resulted in a sell-off.

While USDT relies on fiat currency reserves, UST wasn’t backed by any reserves and instead relied on a complex system to maintain price stability. Investors were lured into the stablecoin thanks to the promise of near 20% yield via the Anchor Protocol, Terra’s leading lending platform.

Since 2017, critics have been questioning whether Tether has enough assets in its reserves to justify the cryptocurrency’s circulating supply. In a statement issued earlier this week, the firm said it is “fully backed by collateral.” Tether issues quarterly attestations showing how it distributes the reserves backing USDT.

Korean Crypto Exchanges Issue Litecoin Warning Over Latest Upgrade

Two of Korea’s largest cryptocurrency exchanges, Bithumb and Upbit, have issued investment warnings about Litecoin after an upgrade went live on the cryptocurrency’s network allowing transactions to be sent confidentially.

This week Litecoin activated MimbleWimble Extension Blocks (MWEB), which enable users to  conceal transaction data with its confidentiality features while providing a foundation to improve a token’s usability. Through MWEB, transactions are only known between the sender and receiver.

The Litecoin Foundation notes that MWEB “can be seen as a literal extension from Litecoin’s main chain, or a parallel highway, via which you can send coins to the extension block and back to the main chain.”

Both Bithumb and Upbit pointed to Korea’s Act on Reporting and Use of Specific Financial Transaction Information, a policy requiring exchanges to implement know-your-customer and anti-money laundering procedures, in their warnings.

Korean exchanges have been known to delist cryptoassets after issuing such warnings.

Invictus Capital spearheads the world's first regulated and tokenised mutual fund

Invictus Capital has become the world’s first fully regulated, tokenised, and administered mutual fund in the world.

In 2017, Invictus set out to fundamentally change the asset management industry. Invictus' officially regulated funds are now institutional grade products with industry leading fees and very accessible minimum requirements.

Invictus fund tokens now represent legal ownership of the underlying fund shares and a wide range of benefits are now available:

• In the new fund structure, tokens represent shares of the mutual funds, providing investors with security and peace of mind.

• An independent board of directors has been appointed, ensuring a strong corporate governance system.

• Fund assets and the financial health of the funds are verified regularly by independent external auditors.

• Fully compliant with global AML and KYC regulations.

Disclaimer:

Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite.

Its content does not constitute financial advice. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice.

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