<p>Police authorities in South Korea are taking action to freeze assets tied to the non-profit group Luna Foundation Guard, <a href="https://n.news.naver.com/mnews/article/056/0011270954?sid=102">according to KBS</a>, the country's national broadcaster.</p> <p>Per the publication, the Seoul Metropolitan Police Agency asked multiple exchanges to block Luna Foundation Guard (LFG) from withdrawing any corporate funds.</p> <p>However, the exchanges are not bound by law to do so, meaning that whether or not those actions will be carried out is unclear, according to KBS.</p> <p>Police said that they intervened after finding clues indicating that there were embezzled funds within LFG, per the report.</p> <p>Following the recent Terra meltdown, which saw the value of stablecoin TerraUSD (UST) fall below $0.10, some investors <a href="https://www.theblockcrypto.com/news+/147972/lawsuits-aimed-at-recouping-ust-luna-losses-test-uncharted-waters">have already sued Terraform Labs founder Do Kwon.</a></p> <p>Also in relation to the recent collapse of the Terra ecosystem, Korean legislators are meeting with representatives from five of the biggest exchanges in South Korea on Monday and Tuesday, <a href="https://www.chosun.com/economy/stock-finance/2022/05/23/64I36ZTJS5EX5P2XI6VVNR6R7Q/?utm_source=naver&amp;utm_medium=referral&amp;utm_campaign=naver-news">according to Chosun Daily</a>.</p> <p>Those companies are Upbit, Bithumb, Coinone, Korbit and Gopax, <a href="https://www.newspim.com/news/view/20220523000578">according to Newspim</a>. They will likely have to answer to whether or not they should also be held accountable for the loss of funds by token holders.</p> <p>“We will request a quality investor protection policy to be implemented amongst exchanges,” Yoon Chang-hyeon, chairman of the People Power Party's Virtual Assets Special Committee, said in a Facebook post, according to Newspim.</p> <p>Coinone <a href="https://www.theblockcrypto.com/post/146253/korean-crypto-exchanges-issue-warnings-about-trading-luna">suspended trading of Luna</a> — which is part of the Terra ecosystem and was meant to help UST keep its peg to the dollar — after its value plummeted. At the same time, Korbit and Bithumb issued "investment warnings."</p>