South Korean prosecutors have raided seven local cryptocurrency exchanges to investigate a fraud case linked to the Terra explosion.
The process is to determine whether the collapse of the Terra ecosystem was an intentional move by Do Kwon, founder and CEO of Terraform Labs.
The Seoul Southern District Prosecutor's Office raided the most prominent cryptocurrency exchanges, including:
Bithumb, Upbit, Coinone and four other trading platforms on Wednesday to investigate a fraud case linked to the crash of Terraform's TerraUSD and Luna, according to local media.
The investigation team began confiscating transaction records and other materials from crypto companies around 5:30 pm.
In addition to the main trading platforms, the investigation agency raided eight other places linked to people with possible links to the case.
The investigative body will analyze the seized materials and question witnesses to determine the overall damage repercussions.
Investigators will also look into whether Do Kwon and his team were responsible for intentionally causing the crash, which wiped out $60 billion from the crypto market in a matter of days.
A common approach to the disaster, as promoted by security firm Uppsala Security, is that the wallet behind the attack against UST and its disengagement was owned or controlled by Terraform Labs (TFL) or Luna Foundation Guard (LFG).
The CEO of Uppsala Security has urged investigators and regulators to look into the matter, and central exchanges such as Coinbase and Binance are implicated.
Terraform Lab investigations are seeing increasing urgency among authorities across jurisdictions.
Earlier, the South Korean Ministry of Justice and US agencies agreed to strengthen ties on fighting crypto crimes by sharing investigative data on high-profile cases such as the recent Terra cash.
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