Crypto exchanges raided by Korean prosecutors in Luna Terra investigation. Up to seven different Korean crypto exchanges have been raided as the South Korean police continue to investigate the Terraform Labs fraud case.
According to a report published by the Yonhap News Agency, a team of investigators from the Seoul Southern District Prosecutors Office have began seizing transaction records and other materials needed as part of the investigation into the a fraud case connected to the collapse of stablecoin UST and Luna.
A verified source has confirmed that Korean authorities are currently raiding the new "secret offices" of Terraform Labs in Seoul to recover evidence related to the Terra fraud.
— FatMan (@FatManTerra) July 20, 2022
The prosecutors reportedly raided 7 crypto exchanges, including Bithumb, Upbit, Coinone, and four other local exchanges as well as eight residential and office addresses.
After collecting all the seized materials and questioning witnesses, the investigators aim to study the events and determine the size of damages suffered by investors as well as determine whether Do Kwon, CEO of Terra Labs had intentionally caused the collapse of Terra and Luna in a fraudulent manner.
Terra’s UST stablecoin made a dramatic collapse earlier this May after it lost its peg to the U.S dollar. Because of this, The LUNA token followed suit in falling, going from prices of $100 to way below $1, this caused billions of investors’ wealth to be completely wiped from the market. Terra’s collapse was said to result in roughly $40 billion worth of losses.
Since the fall of Terra, Do Kwon has attempted to revive his work by ditching the UST stablecoin and launching a brand new token. However, it proved to be unsuccessful as the new Luna cryptocurrency is still at the 139th place by market cap, which is way below the top ten spot that the original Luna crypto had previously consistently been.