South Korean Prosecutors target 7 Crypto Exchange linked to Terraform

South Korean prosecutors raided seven local crypto exchanges to scrutinize a fraud case linked to Terra’s implosion. The operation is to decide if the collapse of the Terra ecosystem was a deliberate attempt by the founder & CEO of Terraform Labs Do Kwon.

Crypto exchanges raided by Prosecutors

According to a local news report, Seoul Southern District Prosecutors Office raided Bithumb, Coinone, Upbit, and four other exchanges on Wednesday to investigate a fraud case connected to the crash of Terraform Lab’s TerraUSD and LUNA.

The investigation team began seizing transaction records and different materials from the crypto companies at around 5:30 pm. Besides major exchanges, eight other places associated with the individuals with potential ties to the case were also raided by the prosecutors.

Also read, Hacker group Anonymous warns Do Kwon over Terra Luna

The investigation will analyze the confiscated material and question witnesses to determine the size of the total damage of the fallout. In addition, investigators will also look into Do Kwon and see if his team were responsible for “intentionally causing” the collapse, and erasing $60B out of the crypto market within days.

A well-known take on the incident, as promoted by security company Uppsala Security, is that the wallet behind the attack kicking off the run against UST and its de-pegging was owned or regulated by Terraform Labs (TFL) or Luna Foundation Guard (LFG).

Must read, Do Kwon owes $78.5 Million to the South Korean Government

Uppsala Security CEO Kim Hyung suggested to investigators and regulators to look into the matter as centralized exchanges such as Coinbase and Binance are both involved.

Investigations on the Terraform Lab have constantly developed urgency among authorities across jurisdictions. In fact, South Korean Justice department and US agencies agreed to strengthen ties on fighting crypto crimes by sharing investigation data on high profiles cases such as Terra’s.

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