South Korea has recently raided its seven local crypto exchange platforms while investigating a fraud case linked to the downfall of Terraform Labs.
The Seoul Southern District Prosecutors Office is reportedly trying to determine whether the Terra ecosystem collapse was an internal mode by the founder and CEO Do Kwon.
According to a local media, Yonhap News Agency, the office raided seven exchanges, including Upbit, Coinone, and Bithumb, on Wednesday to investigate a fraud case linked to the Terraform Lab’s LUNA/UST disaster.
Around 5:30 p.m., the investigation team started taking transaction logs and other documents from the cryptocurrency companies.
In addition to key exchanges, eight other locations connected to the people who may have connections to the case were also investigated by the prosecutors, according to the report.
To estimate the extent of the fallout’s overall impact, the investigation will examine the evidence it has seized and speak with witnesses. Investigators will also examine if Kwon and his team deliberately caused the collapse, which erased $60 billion from the cryptocurrency market in a matter of days.
Terraform Labs controlled the collapse: Uppsala Security
Security company Uppsala Security claims that its investigation found that the wallet behind the attack that led to UST de-pegging was “owned or controlled by Terraform Labs (TFL) or Luna Foundation Guard (LFG).”
The CEO of Uppsala Security, Kim Hyung, urged authorities to look into the incident because centralized exchanges like Coinbase and Binance are both implicated.
Authorities from many jurisdictions have been increasingly urgent in their inquiries of the Terraform Labs. As TheCoinRise previously reported, the South Korean Justice Department and US agencies have agreed to expand their collaboration in the fight against crypto crimes by exchanging information on high-profile incidents like Terraform Labs collapse.
Moreover, in June, South Korean investigators imposed Travel Ban on Terra developers along with calling Terraform Labs staff for questioning.
