South Korean Authorities Raid Terraform Labs Offices

South Korea

✍️ 26 July, 2022 - 14:07 👤 Editor: Jakub Motyka

  • After months of investigation by different countries, the authorities raid the offices of Terraform Labs.
  • Both users and the authorities hope that this provide evidence about what happened to the company.
  • Will this measure help confirm that this was a planned action by the company?

After several weeks of investigation, South Korean authorities raid the offices of Terraform Labs. The measure was taken in order to collect evidence to learn more about the collapse of Terra (LUNA). At the same time, the authorities have decided to raid the offices of other local exchanges, in order to learn more about Terra's movements. At the moment, the exact name of the exchanges that have been raided is unknown.

The collapse of Terra has generated that, in addition to Korea, other countries intervene in the investigation for the allegations of fraud. Several users have filed complaints against the company's CEO, Do Kwon, and co-founder, Daniel Shin. Both are accused of fraud for the loss of millions of dollars after the fall of their stablecoins. The consequences of this fall still seriously affect the crypto market, making this investigation of vital importance.

South Korea vs. Terraform Labs: The Implications Behind The Fact

According to Yonhap, the raids were carried out to seize transaction records, being valuable material for the investigation. This material has helped the authorities determine the circumstances that caused the disappearance of the USTC and LUNA, plus related resources. Similarly, these data have served to have a kind of chronology behind the events that caused the fall of the currencies.

According to the data, three transactions, part of a planned operation, were responsible for increasing the volatility of the pool. The first operation was a withdrawal of 150 million UST from the liquidity pool. Three minutes later, a trader exchanged 85 million UST for USDC to increase the volatility of the pool. Within the next hour, another trader converted 100 million UST into USDC in four staggered transactions, making the situation even worse.

Latest news on crypto:

Angélica Añez

Image sources:

  • South Korea: https://ko.wikipedia.org/wiki/KT#/media/%ED%8C%8C%EC%9D%BC:Flag_of_South_Korea_on_building.jpg

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