Korean Authorities To Interrogate Crypto Exchanges About TerraUSD (UST) Collapse: Report

South Korean officials plan to question representatives from the country’s five largest crypto exchanges about the recent Terra (LUNA) collapse.

According to a new report from local news outlet Newspim, Korea’s ruling party will hold an emergency meeting with representatives from Upbit, Bithumb, Coinone, Korbit and Gopax to discuss the ramifications of LUNA’s $40 billion implosion.

Says Yoon Chang-Hyeon, a member of South Korea’s ruling party and chairman of the parliament’s special virtual assets committee,

“We will check [the exchanges’] investor protection measures.”

The planned emergency meeting follows news that LUNA founder Do Kwon is under investigation by Korean officials for claims of running a fraudulent operation.

Korean officials are specifically investigating Kwon in regards to the Anchor Protocol, a decentralized finance (DeFi) platform built on top of the Terra ecosystem’s blockchain, which offered investors of TerraUSD (UST) returns of approximately 20%.

The report says that the Financial and Securities Crime Joint Investigation Team will investigate the case.

“Kwon’s remarks promising returns could provide a key clue.”

Do Kwon and fellow Terraform Labs co-founder Daniel Shin are also being sued by five investors who say they have lost $1.1 million due to “fraud and other financial irregularities.”

Terra, worth approximately $80 just a few weeks ago, is currently trading for $0.000181.

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Featured Image: Shutterstock/Sergey Nivens