HomeBitcoinSouth Korean authorities attack 15 entities linked to Terra collapse.

South Korean authorities attack 15 entities linked to Terra collapse.

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The offices of the cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit, and Copax, among others, were reportedly searched on Wednesday by the Seoul Southern District Prosecutors Office.

Seven cryptocurrency exchanges were among the 15 businesses that were the target of a search and seizure by South Korean prosecutors looking into Terraform Labs.

The offices of Upbit, Bithumb, Coinone, Korbit, and Copax, as well as other companies connected to the collapse of Terra, were raided by the Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutors Office, according to a report published on Wednesday by News1 Korea. Authorities allegedly collected information regarding TerraUSD (formerly UST) and Terra (LUNA) transactions, which resulted in losses for almost 200,000 Korean investors after the tokens’ significant price devaluation and subsequent collapse in May. Terra (LUNA) is now Luna Classic (LUNC).

In a lawsuit against Terraform Labs and its co-founder Do Kwon, some of the victims of Terra’s failure and UST’s de-pegging reportedly engaged local law firm L.K.B. & Partners to represent them on the grounds that the company committed fraud. The prosecutors’ office received complaints from more than 100 persons who apparently suffered damages totaling over $8 million.

According to a representative for L.K.B & Partners, “The defendants did not properly notify about design faults and defects in the algorithm while building and issuing Luna and Terra coins in a collusion to attract investors.”

Despite having its headquarters in South Korea, Terraform Labs’ collapse and the events that followed it have had a significant impact on the cryptocurrency industry. Investors impacted by the UST and LUNA fiasco in the United States hinted at taking legal action against yield generation program Stablegains for allegedly misappropriating $44 million in deposited cash.

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