South Korea raided a series of cryptocurrency exchanges after the Luna case

 KOREA Seoul prosecutors are stepping up their investigation of Terraform Labs following the Luna crash, by examining a series of related cryptocurrency exchanges.

According to Yonhap, on July 20, a team of investigators from the Seoul Southern District Prosecutors' Office began seizing transaction records and other documents from seven cryptocurrency exchanges in South Korea related to the collapse of the cryptocurrency exchange. Luna and stablecoin TerraUSD (UST). These exchanges include Upbit, Bithumb, Coinone, Korbit, Copax and two others.

Terraform Labs founder Do Kwon. Photo: Bloomberg
Terraform Labs founder Do Kwon. Photo: Bloomberg

The prosecutor's team also raided eight locations, including the homes and offices of those under investigation. Previously, a series of Terraform Labs employees were banned from leaving the country after the Luna and UST projects collapsed in May.

Spokespersons for Upbit, Bithumb and Gopax confirmed that prosecutors visited their offices on the evening of July 20 and seized relevant transaction records. Other exchanges have not yet commented.

At the beginning of May, the cryptocurrency market was shaken when two tokens, Luna and UST, dropped sharply. Many people around the world have invested in this cryptocurrency and suddenly lost their hands overnight, including Korean investors.

Currently, both Terraform Labs and 9x CEO Do Kwon are facing a series of lawsuits in their home country, accusing the company of fraud and illegal fundraising.

In early June, according to the Korea Herald, Terraform Labs closed its office in Korea last year to avoid paying taxes, keeping only its headquarters in Singapore. This company dissolved the branch just before the incident hit - the action was judged to be unusual.

Besides South Korea, also in June, broadcaster JTBC reported that the US Securities and Exchange Commission (SEC) worked remotely with some key TerraForm Labs employees, focusing on designs. weaknesses of the Luna project. These employees said they "predicted" the demise of Terra and Luna, then sent a danger alert to CEO Do Kwon, but were all dismissed.

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