Terra

Terra Case Continues, South Korean Investigators Storm 7 Crypto Exchanges

Summary:

  • Investigations into Terra’s collapse continue with fresh efforts from local authorities.
  • South Korean prosecutors raided seven exchanges on Wednesday as part of a probe into the matter.
  • Documents and transaction records from the offices of Upbit, Bithumb, Coinone, and four other exchanges were seized during the process.
  • Officials from the Seoul Southern District Prosecutors Office led the exercise.
  • Investors filed complaints against Terraform Labs, and CEO Do Kwon earlier over the tumble of LUNC (formerly LUNA) and TerraUSD (UST) which wiped out around $40 billion from investors pockets.
  • A new LUNA coin has since been launched with a new blockchain network to match. 

Investigators from the Seoul Southern District Prosecutors Office conducted raids on seven exchanges on Wednesday as part of an ongoing probe into the collapse of LUNA Classic and TerraUSD, two tokens designed and championed by Do Kwon’s Terraform Labs.

Major crypto exchanges like Upbit, Bithumb, and Coinone were key entities raided by prosecutors. Relevant documents and transaction records are among the properties seized by authorities, per reports. Four other exchanges were also visited by investigators as well.

Local media house, Yonhap News Agency, reported that Korean prosecutors hope the documents obtained in Wednesday’s raid will help shed more light on how LUNC and UST cratered. 

Authorities also seek to determine if Do Kwon and Terra intentionally defrauded investors of billions. Investigators previously secured Kwon’s tax records, sources say. 

As part of ongoing investigations, key developers who worked on LUNC and UST as well as former TFL employees were banned from leaving South Korea.

Terra’s Collapse And Supposed Rebirth 

The crash of LUNC and UST purportedly shook the crypto market and triggered a downturn in token asset prices. As previously reported, The Luna Foundation Guard, Terra’s non-profit organization, held a considerable amount of Bitcoin prior to UST’s depeg.

Since LUNC fell below pennies and UST failed to regain its dollar peg, a new LUNA coin has launched along with a fresh blockchain. Do Kwon’s “Rebirth” proposal made this possible after proposal 1623 passed a governance vote.

The new token is available on major crypto exchanges like Binance and trades hands at $2. 

Terra Case Continues, South Korean Investigators Storm 7 Crypto Exchanges 10
LUNA Daily Price Chart (Source: TradingView)