The Terraform Labs case continues to make waves in the global market, with authorities still investigating the steps that led to the collapse of the cryptocurrency and the damage that has disastrously struck many investors. South Korean authorities continue to take actions to unravel the case, which is being treated as a fraud.
According to local news, the country’s authorities have raided 15 companies linked to the collapse of the Earth (Luna). Among the target companies of the operation were 7 cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Korbit and Copax.
The search and seizure team consisted of agents from the Seoul Southern District Prosecutor’s Joint Financial and Securities Crime Investigation Team.
The research team has obtained data on Earth (LUNA) and the now-defunct stablecoin UST. This data shows that about 200,000 Korean investors suffered losses due to the massive drop in token prices in May.
search and seizure
According to the Yonhap website, the most recent development of the study had a team of researchers from: Seoul Southern District Attorney who has conducted investigative raids on several cryptocurrency exchanges in the country, including the well-known Upbit. According to the news agency, the action by the authorities took place on Wednesday morning.
The raids include the seizure of transaction records and other material deemed valuable in the investigation of the circumstances leading to the disappearance of Terraform, TerraUSD and LUNA digital currencies, that ultimately led to a loss of a billion dollars in the entire crypto market.
The investigations follow the complaints and lawsuits filed by several TerraUSD investors who lost everything after the cryptocurrency lost its support in the dollar and lost all of its value. The lawsuits were primarily filed against Do Kwon, the founder of Terraform Labs and co-founder Daniel Shin.
Both were accused of fraud that resulted in the loss of billions in won (South Korean fiat currency).
Investigators will analyze the seized material and question witnesses to determine the extent of the total damage to Earth (Luna). In addition, investigators will investigate whether Kwon and his team were responsible for “deliberately causing” the collapse, wiping $60 billion from the cryptocurrency market within days.
fraud
Furthermore, at the end of May, Do Kwon accused in a complaint of large-scale fraud using the Mirror Protocol created by Terraform Labs. Shortly afterwards, the Terraform was accused of money laundering through a South Korean shell company that promised Blockchain consulting.
As Finbold shows, in addition to these allegations, another employee, who so far appears to have no connection to Do Kwon, is under investigation for embezzling Bitcoins from Terraform Labs.
While all this is happening, many are investigating and claiming that there is a possibility that the EarthUSD collapse was an inside job.
Quite simply, TerraForm Labs’ situation is very complicated, which certainly precludes any chance that it can recover the value of TerraUSD and its other assets, even with an ecosystem recovery plan.
The case of TerraUSD/LUNA is a good example that large risks are often disguised in solid projects, making the focus and research of projects before an investment even more important and should never be brushed aside.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
