Employees of the South Korean prosecutor’s office staged a raid, during which they raided legal entities, one way or another related to the investigation into the collapse of the Terra project.
The offices of seven local stock exchanges were searched.
Law enforcement is investigating whether the collapse of the Terra ecosystem was a deliberate move by Terraform Labs founder and CEO Do Kwon. Prosecutors visited the offices of the trading exchanges Bithumb, Upbit, Coinone and four other smaller sites. The investigative team seized transaction records and other materials from cryptocurrency companies about Terraform-related activities.
In addition to exchanges, law enforcement officers raided eight other places associated with individuals involved in the case. The investigation promises to analyze the seized material and interview witnesses to determine the amount of total damage.
Investigators are going to find out if Kwon and his team are responsible for “deliberately causing damage that wiped $60 billion from the crypto market in a few days.”
A popular view of Terra’s collapse, promoted by blockchain security company Uppsala Security, is that the wallet that attacked UST and broke its peg to the US dollar was “owned or controlled by Terraform Labs or the Luna Foundation Guard.”
Uppsala Security CEO Kim Hyung urged investigators and regulators to look into the matter as centralized exchanges such as Coinbase and Binance are involved. Investigations into the activities of Terraform Labs and Do Kwon are unfolding in several countries at once.
In early July, law enforcement and regulators in the United States and South Korea agreed to share information about the investigation of cases related to the crypto industry, and especially about the situation with Terra-LUNA. In June, following the default of the Terra project, the South Korean authorities decided to form a separate committee for digital assets by the end of June, which will be responsible for protecting cryptocurrency investors.
