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South Korean prosecutors raid crypto exchanges amid Luna probe

Authorities carry out searches after investors accuse co-founders of blockchain platform Terraform Labs of fraud.

Published On 21 Jul 2022

South Korean prosecutors have raided a number of local cryptocurrency exchanges and offices as part of an inquiry into the collapse of the digital currency Luna.

“A total of 15 places, including cryptocurrency exchanges and related offices, were searched on Wednesday for proof of allegations,” a spokesperson told the Reuters news agency on Thursday, without elaborating.

Investors have levelled accusations of fraud against Korean developers Do Kwon and Daniel Shin, co-founders of blockchain platform Terraform Labs, which is affiliated with the failed cryptocurrency.

Luna’s value fell to practically zero in May following the collapse of stablecoin TerraUSD, which had been pegged to the US dollar and was exchangeable with Luna.

Several employees of South Korea-based Terraform Labs were put on a no-fly list last month.

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