Terra's principal designers are barred from leaving the country by South Korean authorities

Following the infamous collapse of Terraform Labs' stablecoin TerraUSD (UST) and native token Terra (LUNA), the South Korean government is increasing its probe into the company, with authorities filing an order barring Terra's key designers from leaving the country.

According to South Korean media site JBTC, the Seoul Southern District Prosecutor Office's Joint Financial and Securities Crime Investigation Team recently put a departure ban on Mr. A as part of their investigation.

Mr. A informed the outlet earlier that he spoke with Do Kwon, the Terraform Labs CEO, who allegedly assured him that he had "earned enough money to buy an island," according to the report.

Also, Mr. A told reporters that Kwon sold cryptocurrencies to institutions in secret in order to raise significant sums of money.

Prosecutors are looking into whether the monies obtained in this way were used to artificially inflate the price of the coin.

The report also indicated that the prosecution's actions raise the potential of a forced probe, which would entail search and seizure orders as well as summoning key officers.