Searches begin in Korea in case of UST cryptocurrency collapse

South Korean prosecutors have raided 15 companies, including 7 cryptocurrency exchanges, in connection with the investigation into the collapse of UST and LUNA.

According to Seoul South District Prosecutor Choi Sung-kook, the searches and confiscations are necessary to obtain any evidence of Do Kwon's involvement in the UST and LUNA crash. Among the exchanges that were searched: Bithumb, Upbit, Coinone, but their representatives are not commenting on the situation at this time.

Law enforcement agencies launched the investigation after investors filed a lawsuit against Terraform Labs CEO Do Kwon and co-founder Daniel Shin, who are considered guilty of losing their funds. According to the prosecutor’s office, to determine whether Kwon and Shin were indeed involved in the collapse, the investigation team will analyze the materials seized during the searches and interview witnesses.

In early July, South Korean and U.S. law enforcement agencies agreed to cooperate in the investigation of the Terra ecosystem collapse, with prosecutors from both countries exchanging information on the progress of the investigation. Do Kwon and Terraform Labs are the subjects of many lawsuits, with new allegations appearing almost daily. And some of its employees are no longer allowed to leave South Korea.