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Cardano Founder Says South Korea Escalating Terra Investigation Quickly.
A day ago, As Reported By The Crypto Basic, a number of South Korean exchanges were raided by government prosecutors. The raid was meant to gather evidence for the ongoing investigations on the collapse of Terra Luna and TerraUSD that led to thousands of people losing their funds. UpBit and Bithumb were among the targeted exchanges. The raid culminated in seizing transaction records pertaining to Terra and its collapsed coins.
The raid prompted Cardano founder Charles Hoskinson to dish out his opinion in a Twitter post. According to him, the investigations into Terra were taking a rather fast pace in South Korea.
https://t.co/tn4ut0W4Ch pic.twitter.com/PQyCrsqoUK
— Charles Hoskinson (@IOHK_Charles) July 21, 2022
Investors Sued TFL And Do Kwon
The raid comes after a group of investors affected by the collapse of Luna and UST took their claims to court to file a case against Do Kwon and co-founder Daniel Shin. The investors claim that the two conspired to defraud the investors of millions of dollars. Meanwhile, Do Kwon is held up in Singapore, a country that has no extradition treaty with South Korea.
Besides Upbit and Bithumb, prosecutors also raided Dunamu & Partners, which is the company arm that handles investments for the parent company named Dunamu. Donamu controls Upbit crypto exchange based in South Korea.
Evidence Building Up
By saying that the investigations are fastening up, Charles Hoskinson seems to be onto something. First off, there have been lots of allegations and charges added to the sheet against Do Kwon and Terraform Labs (TFL) since the collapse of Terra. More evidence seems to be unearthed every other day. Just recently, it was discovered that Do Kwon used a shell company to launder funds from Terra.
However, even before this happened, Do Kwon and TFL were already under investigation in South Korea for tax evasion and in the US for selling UST illegally. The investigations launched after the collapse of Luna and UST seem to have helped speed things up.
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