The after effects of Terra (LUNA) crash are still hovering around the crypto space.
It was only yesterday that 15 South Korean companies were raided by the country’s prosecutors, to verify their connection with Terraform Lab LUNA and US tokens.
This raid and the ongoing investigations on Terra (LUNA) crash saw an intense pressure on LUNA price.
South Korean prosecutors search for physical evidence
In an effort to obtain evidence to support the claims against the Terra crash, prosecutors nationwide raided crypto exchanges for physical evidence. Of these 15 companies, seven were crypto exchanges.
News1 Korea, the country’s media, claims that the major crypto exchanges like Upbit, Bithumb, Coinone, Korbit and Gopax were raided to find out the connection with Terra crash. Moreover, Dunamu & Partners, the firm which operates the Upbit exchange was also raided.
According to the sources, around 200,000 Korean investors suffered massive losses after Terra crashed in May 2022. About 100 investors also filed a lawsuit against Terraform Lab founder Do Kwon and co-founder Shin Hyun- Seung, for fraud.
Meanwhile, crypto hedge fund, Three Arrow Capital also claimed that there was a loss of around $200 million after the Terra LUNA crashed.
On July 20, 2022, reports of the corporate raid related to Terraform Labs were leaked. This caused a drop in the value of LUNA. LUNA’s value fell almost 8% and struggled to recover. Following a positive price setup, analysts assessing the market price of LUNA were able to determine the future of Terra.
