According to local news agency Yonhap, South Korean prosecutors, LUNA As part of the investigation into token developer Terraform Labs and co-founder Do Kwon, seven local cryptocurrency raided the stock market.
Transaction Records of Terra (LUNA)-Linked Cryptocurrency Exchanges Seized
Investigators from the Seoul Southern District Attorney’s Office seized the transaction records of exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax at around 5:30 pm local time. Authorities also searched the homes and offices of people allegedly involved in the case for evidence.
The YTN news agency also reported that the investigative team also raided the local exchange Dunamu, an investment firm affiliated with Upbit, and its partners. Dunamu reportedly purchased 20 million Terraform Labs LUNA tokens in the early stages of the Terra network in 2018.
Terraform Labs and its co-founders Kwon and Daniel Shin have been the subject of several lawsuits and investigations in South Korea and abroad following the May collapse of the firm’s digital currencies TerraUSD and LUNA. Investors of both coins sued the firm and both co-founders over allegations of fraud, as billions of dollars were lost during the crash.
A joint financial crime investigation team is also investigating Terraform Labs for possible tax evasion of approximately $78 million. Investigators obtained Kwon’s records from tax authorities last month as part of their tax evasion investigation, Yonhap reported.
Kwon previously claimed that Terraform Labs has no tax liability in South Korea.
As part of the investigation, Korean prosecutors banned Terraform Labs developers and former developers from leaving the country.
*Not investment advice.