- Exchanges, including Upbit, Bithumb, and Coinone, were the targets of raids.
- Around 200,000 South Korean investors are thought to have invested in TerraUSD and Luna.
Shocking revelations from South Korea have been pouring in after the fall of Terra-Luna. On Wednesday, Korean prosecutors raided seven cryptocurrency exchanges to see whether they went through a sufficient screening procedure before listing UST and LUNA, as part of the country’s investigation into these platforms.
Raids were conducted on major crypto exchanges including Upbit, Bithumb, and Coinone, as well as four locally owned exchanges. A total of eight other locations were raided, including the residences and workplaces of those engaged in the investigation.
Conditions After the Fall Down of Terra-Luna
In advance of the Terra-Luna collapse, the corporation announced that its South Korean headquarters would be disbanded and that it would relocate to Singapore. There have been revelations about Terra’s Singapore office being a paper firm, with the main of its activities still taking place in South Korea, as of May of this year according to South Korean media.
Local news outlets said that “about 200,000 investors in South Korea are presumed to have invested in TerraUSD and Luna,” a sobering statistic that was provided following the collapse. It was after this that local cryptocurrency exchange providers were asked 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,” according to the country’s regulatory watchdogs.
In South Korea, the Terra-Luna catastrophe had a significant impact on institutional investors as well. Hashed, a South Korean VC business, was discovered to be one of the top Terra investors that suffered a severe loss. An estimated $3.5 billion was lost by hashed wallet users, according to statistics from CMC for April.
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