The events related to the collapse of the TERRA / LUNA tokens have had implications across the crypto world. In the United States, investors affected by the aftermath of UST and LUNA are filing a lawsuit against the application of yield Stablegains, for the alleged loss of $ 44 million in deposited funds.
South Korean prosecutors investigating Terraform Labs reportedly carried out searches and seizures at 15 companies, including seven cryptocurrency exchanges.
The Seoul Southern District Prosecutors Office’s Joint Financial and Securities Crime Investigation Team broke into the offices of Upbit, Bithumb, Coinone, Korbit, Gopax and other companies linked to the Earth collapse, News1 Korea reported Wednesday. The authorities reportedly obtained transaction data for TerraUSD (formerly UST) and Terra (LUNA) (now Luna Classic) in which some 200,000 Korean investors suffered losses following the sharp devaluation of the token price and the subsequent collapse in May.
Following the bankruptcy of UST and LUNA, South Korea’s national tax agency allegedly imposed a $ 78 million fine on Terraform Labs and Kwon for tax evasion. The country’s lawmakers have also called Kwon to speak in a parliamentary hearing about the events related to the bankruptcy of Terra and the misdirection of UST.
Some of the victims of the Terra Crash and UST depegging allegedly hired local law firm L.K.B. & Partners to represent them in a lawsuit against Terraform Labs and its co-founder Do Kwon, claiming the company has committed fraud. More than 100 people filed a complaint with the prosecutor’s office, reporting an overall loss of approximately $ 8 million.
