According to a report from, Upbit offices and other cryptocurrency exchanges were searched Wednesday by a team investigating a fraud case related to the collapse of Terraform Labs sister tokens TerraUSD and LUNA. Yonhap News Agency.
According to the report, around 5:30 p.m. local time, the Seoul Southern District Prosecutors Office started seizing transaction records from Upbit, Bithumb and Coinone and four other local exchanges.
According to reports, the investigation team plans to examine the seized materials and interview witnesses in order to determine the extent of investors’ losses and whether Do Kwon, TerraLabs CEO, deliberately caused the Terra ecosystem to collapse.
Investigators also raided additional places, including the homes and offices involved in this case.
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Terra’s UST algorithmic Stablecoin collapsed after losing its intended peg to the U.S dollar in May along with the LUNA token, resulting in tens of billions of investors’ wealth wiped out from the market.
Regulators have been watching the Terra ecosystem’s implosion around the world.
According to reports, the U.S. Securities and Exchange Commission is investigating a possible violation by federal investor protection rules regarding UST marketing practices. Meanwhile, South Korean authorities started a separate investigation in May in order to determine whether price manipulation and other issues may have contributed to the UST’s collapse.
Kwon and Terraform Labs were also sued in a class action in June at the U.S. District Court of Northern California.
As for Kwon himself, the Terraform Lab’s co-founder last month said that he was “devastated” by the collapse of the project.