Prosecutors Raid 7 Korean Exchanges Amid Terra Probe: Report

Seven exchanges and eight other addresses have been raided in connection to the Terraform Labs fraud investigation.

By Oliver Knight

Jul 20, 2022 at 1:40 p.m. UTC

Updated Jul 21, 2022 at 3:30 p.m. UTC

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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Seven cryptocurrency exchanges in South Korea have been raided by prosecutors probing a fraud case in connection with the collapse of algorithmic stablecoin terraUSD (UST) and LUNA, according to Yonhap News Agency.

Bithumb, Upbit, Coinone and four other local exchanges have been raided alongside eight residential and office addresses, the report said.
TerraUSD fell dramatically off its U.S. dollar-peg in May, causing an industry-wide fallout that saw several hedge funds and exchanges fall victim to overexposure.
Investigators are now seizing material from the raids in order to ascertain whether Terraform Labs founder Do Kwon is guilty of intentionally causing the collapse of UST and LUNA.
In May, Korean police moved to freeze Terraform Labs' assets to prevent the company from embezzling funds that may be considered fraudulent.

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