South Korea: 7 Crypto Exchanges Raided as Terra-Luna Fiasco Continues

Source: Coingape

Post the Terra-Luna collapse, there has been an abundant influx of shocking discoveries coming in from South Korea. The latest update saw the region’s prosecutors raid seven cryptocurrency exchanges this Wednesday as part of Korean regulators’ probe into these platforms, confirming if they went through an adequate vetting process before listing UST and LUNA.

Crypto exchange giants such as Upbit, Bithumb, and Coinone along with four other local exchanges were raided. Additionally, according to local news, the raids were extended to eight other places including the homes and offices of people involved in the case.

South Korea Becomes Epicenter Of Terra-Lunna Collapse

Before the Terra-Luna collapse, the company confirmed the dissolution of its South Korea headquarters, followed by a shift to Singapore. However, this May, South Korean media outlets began to unveil secrets, including the news of Terra’s Singapore office, being a paper company, while a majority of its operations continued to take place in South Korea.

Meanwhile, the local media also presented distressing stats after the collapse pointing out that “about 200,000 investors in South Korea are presumed to have invested in TerraUSD and Luna”. Following this, the country’s regulatory watchdogs including — the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) sought local cryptocurrency exchange operators to “share information on transactions linked to TerraUSD and Luna, including the volumes of their trading, their closing prices and the number of relevant investors”.

Furthermore, along with retail investors, institutional players also bore the brunt of the Terra-Luna debacle in South Korea. The South Korean Venture Capital (VC) startup, Hashed was found to be amongst the top Terra investors who took a hard hit. Hashed wallet suffered losses amounting to over $3.5 billion according to CoinMarketCap data from April.