The South Korean team of detectives examining the demise of Terra Luna went out to a number of cryptocurrency exchanges, including Upbit, Bithumb, and others, to see whether they were involved with Terraform Labs and its demise.
At 5:30 p.m. local time, the Seoul Southern District Prosecutors Office reportedly began investigating Upbit, Bithumb, Coinone, and four other local exchanges. Teams of investigators have collected records of transactions and other Terraform Labs-related materials.
The materials will assist the prosecution in determining the extent of the harm caused to investors. Also, it might assist determine if Do Kwon, the CEO of TerraLabs, intentionally triggered the collapse of the Terra ecosystem.
Teams of detectives also visited the residences and workplaces of officials engaged in the investigation.
The majority of crypto platforms are suffering since the crypto market is declining, but the collapse of Terra-Luna exacerbated the situation.
In May, Terra’s algorithmic stablecoin UST was unable to maintain its connection to the US dollar, causing a drop in LUNA tokens. Due to the terrible climate of Terra-LUNA, tens of billions of investors perished.
The collapse of Terra-LUNA attracted a great deal of global regulatory interest. The U.S. Securities and Exchange Commission (SEC) is investigating whether UST marketing violated investor protection regulations.