Korea investigates 15 entities involved in Terra . collapse

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2022-07-24 01:23:56

South Korean authorities have just searched 15 entities linked to Terra’s collapse, including seven local exchanges and eight other locations.

Korean authorities search 15 entities linked to Terra’s collapse

On July 20, the Securities and Financial Crimes Investigation Team of the Seoul Southern Prosecutor’s Office raided the headquarters of Upbit, Bithumb, Coinone, Korbit and Gopax as well as other locations involved in the incident. Terra.

The investigation team collected data related to transactions of Terra USD (formerly UST) and Terra (LUNA) – now Luna Classic (LUNC). The de-peg resulted in the loss of nearly 200,000 Korean investors and the subsequent collapse in May of Terra.

Some victims of the incident turned to local law firm LKB & Partners in a lawsuit against Terraform Labs co-founder Do Kwon for allegedly “pickpocketing” investors and operating a Ponzi scheme and money laundering conspiracy. More than 100 people have filed complaints with the prosecutor’s office, totaling reported losses of up to $8 million.

A spokesperson for LKB & Partners said:

The defendants failed to properly report design flaws and defects in the algorithm while designing and issuing the Luna and Terra coins that colluded to attract investors.

Kwon’s tax records have also been investigated since June for possible tax evasion. Although headquartered in South Korea, the bankruptcy of Terraform Labs has had a significant impact on the global digital currency industry.

A Terraform employee was also investigated by South Korean officials for allegedly embezzling Bitcoin in May 2021. However, this time there is no evidence of Kwon’s related crimes.

According to a report by the Korean national tax agency, Terraform Labs and Kwon were fined $78 million for tax evasion. The Terraform Labs co-founder was also called by domestic lawmakers to speak at a congressional hearing regarding Terra’s demise and UST’s dependence.

Investors in the United States were also affected by the events of UST and LUNA, Terra’s stable profit generator Stablegains allegedly losing $44 million worth of user deposits.

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