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South Korea Raids 7 Exchanges Involved In The UST-LUNA Disaster

South Korean authorities have begun raids on cryptocurrency exchanges as part of an ongoing investigation into the collapse of Terraform Labs earlier this year.

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South Korean prosecutors are continuously expanding their investigation of Terraform Labs.

According to a report from Yonhap news agency, South Korean authorities have raided at least seven crypto exchanges as part of an ongoing investigation into Terraform Labs and the demise of stablecoin TerraUSD (UST) and Terra (LUNA) in May.

Investigators from the Seoul Southern District Prosecutors’ Office seized documents, including trading records from several exchanges starting at around 5:30 p.m. KST. Upbit, Bithumb, and Coinone are among these.

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Yonhap also reported that investigators conducted raids in at least eight other locations, including the offices and homes of people involved in the case.

Terraform Labs and co-founders Do Kwon and Daniel Shin is the target of legal action from multiple angles. Among these are lawsuits accusing Kwon and the company of misleading investors and prosecutors investigating the company for running a Ponzi scheme.

In June, authorities seized Kwon’s tax records as part of a tax fraud investigation. CoinCu also reported that the US and South Korea had “shared information” about the Terra incident. It is unclear whether this action is related to any or all of those circumstances.

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While Terra has been heralded as one of the most popular DeFi attractions in the space, its demise earlier this year has been recorded as the most spectacular in the history of the industry. Today’s news indicates that enforcement action won’t be over anytime soon.

According to the country’s Financial Services Commission, an estimated 280,000 South Korean investors have been affected by Terra’s collapse.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.