South Korean Prosecutor’s Office Raises 7 Cryptocurrency Exchanges Amid Terra Investigations
South Korean prosecutors are vigorously investigating the sudden fall of terra and its native tokens, TerraUSD and LUNA. They have now carried out a seizure operation on some seven local cryptocurrency exchanges. The primary goal of these raids was to search for any evidence of illegal practices that might have brought about Terra’s downfall.
Not only the Exchanges, but also other related offices were the goal of these raids. On Wednesday, a total of 15 places. Terra’s crash in May caused quite a stir in the cryptocurrency community. Behind her, many investors and traders have accused Do Kwon and Daniel Shin of fraud and theft. Both Korean developers are the co-founders of Terraform Labs. Many cases were filed against the co-founders, forcing the Korean authorities to take legal action against them.
Authorities continue to investigate the Terra case
The Seoul Southern District Prosecutor’s Office captured the transaction log and other materials from various local exchanges. These exchanges include Upbit, Coinone, Bithumb and others. In addition, other raids were carried out on the homes and offices of the people named in the case. These teams will now analyze the confiscated material to later question witnesses. The loss of billions of dollars has shaken the entire cryptocurrency community. Therefore, the authorities are forced to deal with this case and give priority to the return of funds.
In addition, it is accused Do Kwon to have caused this collapse willfully. Following the investigation, multiple platform employees told prosecutors that Kwon drained millions of dollars from the protocol. The investigation team also acquired Do Kwon’s records to investigate any possible tax evasion of the founder of Terra.
Besides, the korean police froze Terra’s assets in May so that the company cannot use the funds anywhere. These funds could be considered fraudulent once the research. Last month also banned many Terra employees from flying to other countries. This shows that the South Korean authorities are taking the case seriously.
Whatever the outcome of this case, the fall of Terra has changed the cryptocurrency space. The moon price and the algorithmic stablecoin, USTdropped practically to zero. Therefore, to restore consumer faith in cryptocurrencies, this case has taken on the utmost importance. To reimburse users, Terra introduced Terra 2.0. However, the new coins were also unable to gain pace in the market.
