Prosecutors Raid 7 Korean Exchanges Amid Terra Probe: Report

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, the report said.
• 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 overexposure.
• 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.

Read more: The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA