South Korea’s Minister of Justice, Han Dong-hoon, recently went to New York to look into ways that the two countries could work together to investigate financial crimes, especially those related to cryptocurrencies.
A local news source says that on Tuesday, Hoon met with Andrea M. Griswold, co-chief of the Securities and Commodities Task Force, and Scott Hartman, head of the Securities and Commodities Fraud Task Force at the United States Attorney’s Office for the Southern District of New York.
The magazine says that the two sides talked about ways to share information and work together more so that they can act quickly on the growing number of securities frauds in the digital asset market. Reports say that the two sides have agreed to share their most recent information about an investigation into Terra, a cryptocurrency project that is being looked into in both countries.
Both countries are looking into what happened with the $40 billion Terra ecosystem. The US just started a new investigation into Terra co-founder Do Kwon, and South Korean authorities are looking into a number of claims against him, including fraud, market manipulation, and not paying taxes.
Authorities in both countries have recently been paying more attention to crimes that involve cryptography, so this might not be the last time they work together. South Korea is one of the strictest countries when it comes to regulating cryptocurrencies. It has strict Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.
Because of what happened with Terra, Korean lawmakers have also set up a new crypto oversight committee to look at new crypto projects that are listed on cryptocurrency exchanges. Many experts thought that the crash of TerraUSD Classic (USTC) would make regulators prefer centralized stablecoins over algorithmic ones.
Lack of clear crypto regulations makes it harder and harder to track and prosecute these crimes, which often involve transactions across borders and money laundering. As a ransom, a Dutch university, for example, paid $200,000 in Bitcoin (BTC) in 2019. Nearly three years after the hack, the investigators tracked one wallet to Ukraine, where they had to work with local authorities to get the money back.