Seven cryptocurrency exchanges in South Korea have been raided by prosecutors probing a fraud case in connection with the collapse of algorithmic stablecoin TerraUSD (UST) and LUNA, according to Yonhap News Agency.
- Bithumb, Upbit, Coinone and four other local exchanges have been raided alongside eight residential and office addresses.
- TerraUSD fell dramatically off its U.S. dollar-peg in May, causing an industry-wide fallout that saw several hedge funds and exchanges fall victim to over-exposure.
- Investigators are now seizing material from the raids in order to ascertain whether Terraform Labs founder Do Kwon is guilty of intentionally causing the collapse of UST and LUNA.
- In May, Korean police moved to freeze Terraform Labs' assets to prevent the company from embezzling funds that may be considered fraudulent.