Prosecutors in South Korea have seized transaction records from crypto exchanges as investigations into Terra heat up.
At around 5 pm on Wednesday, South Korean prosecutors raided several crypto exchanges in the country. The raid was part of an extended investigation into what happened to Terra and why Terra Luna and TerraUSD (UST) collapsed.
Prosecutors are also considering various investigative angles to determine whether Terra officials and their affiliated entities played any part in the collapse of the Terra ecosystem.
According to the Korea Herald: “A team of investigators from the Seoul Southern District Prosecutors Office began seizing transaction records and other material from Upbit and other local exchanges around 5 p.m.”
Investors Filed Case
Following the collapse of Terra Luna and UST, thousands of people lost their funds. It’s estimated that around 200,000 South Koreans lost collective investments, which amounts to billions of Won. After the incident, the investors filed a case to compel Terraform Labs and its controller, Do Kwon, to refund their money. Another co-founder, Daniel Shin, is also named in the case.
Interestingly, Terraform Labs’ CEO, Do Kwon, has since fled the country to live in Singapore. Various independent investigators and stakeholders have determined that Do Kwon and his counterparts may have conspired to defraud investors.
What’s Next?
At the time of this writing, it’s still unclear what the seized transaction records from UpBit and several other South Korean crypto exchanges have revealed to the prosecutors. Granted, any evidence of wrong-doing on the part of Terra officials will be added to the mounting evidence against the crypto company and its controllers.
It’s worth noting that TFL and Do Kwon are already under investigation both in South Korea and the US. In SK, the authorities demand a tax bill amounting to around $80 million that Do Kwon and TFL are alleged to have evaded. The authorities are probing the UST sales that may have been conducted illegally in the US.
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Source: https://thecryptobasic.com/2022/07/20/crypto-exchanges-in-south-korea-raided-by-prosecutors-as-part-of-investigations-into-do-kwons-terra/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-exchanges-in-south-korea-raided-by-prosecutors-as-part-of-investigations-into-do-kwons-terra