Korea and the United States have agreed to share their research data on ongoing crypto-related cases, including Terra.
Collaboration in crypto-related crimes
South Korea’s Justice Minister Han Dong-hoon was recently in New York to discuss various ways the two countries could cooperate in investigations related to financial crimes. This mainly concerns crypto-related crimes.
Hoon met Tuesday with co-chief of the Securities and Commodities Task Force, Andrea M. Griswold. Scott Hartman, head of the Securities and Commodities Fraud Task Force, was also there.
The two sides discussed ways to exchange information and strengthen cooperation. This ensures timely action against the increasing number of securities fraud, the publication reported. The two parties have reportedly agreed to share their latest Terra research data.
The crash of the $40 billion Terra ecosystem has sparked legal investigations in both countries. The US recently opened a new investigation against Terra co-founder Do Kwon. South Korean prosecutors are investigating several charges. This includes fraud, market manipulation and tax evasion.
Financial crimes increasingly complex
The partnership between the two nations could be the first of many. Crypto-related crimes have recently become popular with regulators.
South Korea has emerged as one of the strictest countries when it comes to crypto regulations. The situation surrounding Terra has also prompted Korean lawmakers to form a new crypto oversight committee. It reviews new crypto projects listed on crypto exchanges.
The lack of clear crypto regulations makes detecting and prosecuting these crimes, which often involve cross-border transactions and money laundering, increasingly difficult and complex.
For example, Maastricht University paid 200,000 in Bitcoin as a ransom in 2019. The researchers initially succeeded in tracing one wallet to Ukraine. In the end, it took almost three years to get the money back.
