In order to look into a fraud case connected to Terra’s implosion, South Korean prosecutors searched seven local crypto exchanges. The goal of the investigation is to ascertain whether Do Kwon, the founder, and CEO of Terraform Labs, deliberately caused the Terra ecosystem to collapse.
According to the local news outlet Yonhap News Agency, the Seoul Southern District Prosecutors Office searched Bithumb, Upbit, Coinone, and four other exchanges on Wednesday to look into a fraud case connected to the failure of Terraform Lab’s TerraUSD and Luna.
Around 5:30 p.m., the research team started taking transaction logs and other documents from the crypto companies.
In addition to key exchanges, eight other locations connected to the people who may have connections to the case were also searched by the prosecutors.
To estimate the extent of the fallout’s overall impact, the investigation will examine the evidence it has acquired and speak with witnesses. Investigators will also examine if Kwon and his group “deliberately caused” the collapse, which erased $60 billion from the cryptocurrency market in a matter of days.
Uppsala Security, a security firm, has propagated the theory that Terraform Labs (TFL) or Luna Foundation Guard (LFG) were “owned or managed by the wallet behind the hack launching off the run against UST and its de-pegging.”
The CEO of Uppsala Security, Kim Hyung, requested authorities to probe into the situation because centralized exchanges like Coinbase and Binance are both implicated.
Authorities from many jurisdictions have been increasingly urgent in their inquiries of the Terraform Lab. By exchanging investigation data on high-profile cases like Terra’s meltdown, the South Korean Justice Department and US agencies have decided to fortify their cooperation in the fight against crypto crimes.