Recently, LUNA, a blockchain-based cryptocurrency, collapsed from $12.24 billion to $555 million in May and has made South Korea and the United States work together.
South Korea’s Justice Minister, Han Dong-hoon, who is involved in Terraform Labs’ case, a parent company of Terra, has met US officials in New York and discussed ways to fight the new and evolving financial crimes, especially crypto-related.
The president of the United States has ordered federal agencies to look into crypto as crypto has been used in money laundering scams and terror funding.
The market had come into a shock due to the president’s remarks, but Biden has ensured that he will not impose a state crackdown on crypto, after which the market saw some growth.
South Korea will establish the first cryptocurrency regulatory body.
South Korea is reviving its special investigation unit to fight crypto-related scams, which will be called Yeouido Grim Reaper. It will have 48 people in total. It will consist of prosecutors and members of South Korea’s two most potent economic and regulatory departments: the Financial Services Commission and the Financial Supervisory Service.
South Korea and the US have a history of working together.
In 2017, the Supreme Persecutor’s office, a judiciary body of South Korea, and the FBI, the investigative body of America, arrested two suspects in a cryptocurrency fraud case.
The prosecutor’s office and the FBI shared information and discovered that they made a website disguised as Ripple-based crypto and scammed approximately $2 million. Both the scammers were found guilty and were sentenced to jail.