Korean prosecutors raid local cryptocurrency exchanges
Seoul prosecutors raided offices of seven cryptocurrency exchanges as part of Terraform Labs investigation.
According to Yonhap News Agency, prosecutors seized transaction records as well as other materials from Bithumb, Upbit, Coinone, and other exchanges. In addition to the trading venues, prosecutors also raided eight other locations, including offices and private properties of those involved in the case.
The investigation team plans to analyze the seized material, interview witnesses, and then calculate the damage caused to determine whether the terraUSD (UST) collapse was deliberately provoked by Terra ecosystem founder Do Kwon.
In late June, South Korean law enforcement authorities prohibited current and former Terra blockchain developers from leaving the country. Among the sanctioned individuals is a key developer who found out that Terra founder Do Kwon "made enough money to buy an island". It is also reported that Kwon had been manipulating investor funds, but it is unclear whether such activities caused the ecosystem to collapse.
As a reminder, the Terra project has long been subjected to negative repercussions since its dramatic collapse. For example, Terra's legal consultants left the project, and the South Korean tax authorities demanded $78 million from Terraform Labs.
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