Korean Authorities Investigate Cryptocurrency Exchanges into TerraUSD (UST) Collapse: Report


Korean officials plan to ask representatives of the country’s five largest cryptocurrency exchanges about the recent collapse of LUNA.

according to new report The South Korean ruling party will hold an emergency meeting with representatives of Upbit, Bithumb, Coinone, Korbit and Gopax to discuss the damage of LUNA’s $40 billion bombing, local media Newspim reported.

Yun Chang-hyeon, a member of the South Korean ruling party and chairman of the National Assembly’s Special Committee on Virtual Assets, says:

“We will check [the exchanges’] “Investor Protection Measures”

The planned emergency meeting follows news that LUNA founder Kwon Do is being investigated by South Korean officials on allegations of fraud.

South Korean officials are investigating Mr. Kwon, who provided around 20% returns to investors in TerraUSD (UST), particularly with respect to the Anchor Protocol, a decentralized finance (DeFi) platform built on top of the Terra ecosystem’s blockchain.

A joint financial and securities crime investigation team will investigate the case, the report said.

“Chairman Kwon’s remarks promising a return can provide a key clue,” he said.

Kwon Do and fellow Terraform Labs co-founder Daniel Shindo are being sued by five investors for losses of $1.1 million in “fraud and other financial misconduct”.

Terra, which was worth around $80 a few weeks ago, is currently trading at $0.000181.

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