In the probe of the collapse of Terra Luna, the South Korean investigator team reached out to several crypto exchanges including Upbit, Bithumb, and others to assess their possible connection with Terraform Labs and its collapse.
As per the report, the Seoul Southern District Prosecutors Office commenced the probe at 5:30 p.m in local time against Upbit, Bithumb, Coinone, and four other local exchanges. The investigator teams have captured transaction records and other documents linked to Terraform Labs.
The collected document will help the prosecutor in the investigation to gather info about the size of damages suffered by investors. Also, it could also help the investigation into whether the CEO of TerraLabs, Do Kwon intentionally forced the collapse of the Terra ecosystem.
Also Read: S Korea Investigates Terraform Labs for Possible theft of Bitcoin
Apart from this, the investigator teams also conducted raids at the home and offices of officials linked to the case.
While most crypto platforms are beleaguered due to the tumbling crypto market, Terra-Luna’s collapse imploded the worsening market condition.
In May, Terra’s algorithmic stablecoin UST failed to maintain its peg with the US dollar, whose adversary impact also crashed LUNA tokens. This extreme condition in Terra-LUNA drowned tens of billions of investors.
Terra-LUNA collapse also attracted much regulatory scrutiny across the globe. The U.S. Securities and Exchange Commission (SEC) launched an investigation for possible violation of investor protection rules during UST marketing.
Also Read: Why Terra Luna is Crashing Down with its Stablecoin UST?
