LUNA holders watchout: Investigation in the Terra collapse catches investors off guard


  • LUNA price posted nearly 9% losses after South Korean authorities raided the offices of fifteen entities linked to Terra collapse. 
  • Upbit, Bithumb, Coinone, Korbit and Gopax are the top exchanges among the fifteen entities raided by South Korean Authorities. 
  • Authorities obtained data related to TerraUSD and LUNA transactions in which more than 200,000 investors suffered losses. 

South Korean prosecutors raided 15 entities linked to the collapse of Terraform Lab’s sister tokens, LUNA-UST. Their investigation and the raid on top Korean crypto exchanges was followed by a crash in LUNA price. 

Also read: UK financial watchdog says “non-negotiable” crypto regulation a must after Terra LUNA crash

South Korean authorities raid exchanges for physical evidence 

The Seoul Southern District Prosecutor’s Office searched exchanges and entities to secure physical evidence needed to prove the allegations against Terra. Prosecutors executed a search and seizure across fifteen entities, including seven crypto exchanges. 

According to a report for News1 Korea, the Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutors Office raided Upbit, Bithumb, Coinone, Korbit, and Gopax for their connection with Terra. According to local media reports, prosecutors raided Dunamu & Partners, the investment arm of Dunamu, the entity which operates the Upbit exchange. 

Based on data obtained from the search, roughly 200,000 Korean investors suffered losses after the subsequent collapse in May 2022. Nearly 100 investors filed a complaint against Terraform Labs chief Do Kwon and cofounder Shin Hyun-Seung on fraud charges. 

Three Arrows Capital, crypto hedge fund recently confirmed nearly $200 million in losses from the collapse of Terra LUNA. The firm released a statement arguing that

The Terra-Luna situation caught us very much off guard.

LUNA price started its decline post the raid

The news of the raid on Terraform Labs’ related entities started doing the rounds on July 20, 2022, following which LUNA price took a hit. LUNA price plummeted nearly 8% and struggled to recover. Analysts evaluating the LUNA price trend, identified Terra's direction after a successful price fractal. 

For price levels and key information on LUNA’s next move, check this video:

 


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