Terra LUNA Investigation Begins, South Korean Authorities Begin Investigating Domestic Crypto Exchanges

JAKARTA – The collapse of Terraform Labs' two cryptocurrencies, TerraUSD (UST) and Terra (LUNA) last May has been the darkest event in cryptocurrency history. At that time, UST and LUNA fell more than 99%, hurting their investors.

Not long ago, the South Korean government through investigators from the Seoul South District Prosecutor's Office was rumored to have raided the leading crypto exchanges in South Korea, including Upbit.

According to a report by The Korea Herald, the move is part of an ongoing investigation into the failed Terra blockchain.

An investigation into Terraform Labs was initiated by South Korean police and prosecutors in early June over allegations of tax evasion. Terra's demise also prompted South Korea to revive a special financial crimes unit.

According to local media reports Yonhap News, the South Korean authorities reached an agreement with their US counterparts to share investigative data on the troubled crypto project, whose sudden collapse resulted in a loss of about $40 billion.

Meanwhile Terra founder Do Kwon is trying to bounce back by ditching stablecoin TerraUSD (UST) and launching a new token. Last month, Kwon, Terraform Labs and other parties involved in the disaster were faced with a lawsuit alleging the defendants misled investors by promoting unlisted securities.

As is known, the old Terra (LUNA) has changed to Luna Classic (LUNC). While the new token issued by Kwon bears the name of the previous token, Terra (LUNA). However, investors' confidence in LUNA has not recovered due to the LUNA price collapse incident last May.