South Korean prosecutors launch a raid on seven local cryptocurrency exchanges on Wednesday as part of the investigation into Terraform Labs and its co-founder Do Kwon, local news agency Yonhap reported.
Investigators from the Seoul Southern District Prosecutors Office seized trading records from exchanges including Upbit, Bithumb, Coinone, Korbit and Gopax around 5:30 p.m. local time. Officials also searched for evidence in the homes and offices of people allegedly involved in the case.
YTN news agency separately reported that the investigation team also raided local exchange Dunamu and Partners, an investment firm under Upbit. Dunamu reportedly bought 20 million of Terraform Labs’ luna token during the Terra network’s early stages in 2018.
Terraform Labs and co-founders Kwon and Daniel Shin have been the subject of several lawsuits and investigations in South Korea and abroad following the collapse of the firm’s digital coins TerraUSD and luna in May. Investors in both coins sued the firm and both co-founders over allegations of fraud over the loss of billions of won during the crash.
A joint financial crime investigation team is also investigating Terraform Labs for possible tax evasion of around $78 million. The investigators secured Kwon’s records from tax authorities as part of the tax evasion probe last month, Yonhap reported. Kwon previously asserted that Terraform Labs does not have any tax liabilities in South Korea.
As part of the investigation, Korean prosecutors have barred Terraform Labs developers and former developers from leaving the country.
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Source: https://www.theblock.co/post/158716/prosecutors-raid-south-korean-crypto-exchanges-in-terra-investigation-yonhap?utm_source=rss&utm_medium=rss