South Korea prosecutors raid crypto exchanges, offices for Luna investigation

South Korean prosecutors carried out search and seizure operations at local cryptocurrency exchanges and related offices, looking for evidence of illegal practice involved in the collapse of cryptocurrency Luna in May.

“A total of 15 places, including crypto-currency exchanges and related offices, were searched on Wednesday for proof of allegations,” a spokesperson told Reuters on Thursday (July 21), without elaborating.

Investors have made fraud accusations 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 with 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.