Korean Prosecutors to Investigate 7 Crypto Exchanges Linked to TerraUSD Crash

South Korean prosecutors have recently launched an investigation to examine seven local crypto exchanges that might be linked to the catastrophic collapse of the Terra Ecosystem.

According to the official announcement issued on July 21st, investigators from Seoul Southern District Prosecutors Office will decide whether the TerraUSD crash was intentional, as well as look into various documents and question the possible witnesses.

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The prosecutors will reportedly analyze the seized material and all transaction records from Upbit, Coinone, Bithumb, and four other cryptocurrency exchanges. Likewise, eight other places, including offices and homes of people who were supposedly involved, were also on the radar.

The news of the investigation arrives a few months after Terraform’s stablecoin UST, which was always supposed to be worth a dollar, de-pegged from the US dollar and dropped to as low as $0.66.

On top of that, the official report read that the investigation team will probe whether Do Kwon, the CEO of Singapore-based Terraform Labs, was involved in LUNA and UST collapse in any way possible.

Prior to the investigation, Uppsala Security, a Singapore-based security organization founded in 2018, notified the investigators that the wallet which initiated the dramatic fall belonged to none other than Terra itself.

It seems like things for Kwon are in a real pickle for the moment, as the crypto developer recently received a fine of 100 billion won, estimated at roughly $78M, for avoiding taxes from South Korea’s National Tax Service. Back in May, the CEO was also accused of shutting down two of its branches days before the fall of LUNA and UST.