South Korean prosecutors have raided seven different exchanges and eight different addresses in their current investigation of the Terraform Lab collapse. The raid was a customary search and seizure of important documents to study the events and decisions that happened before and after the TerraLuna fiasco.

News1 Korea reported on Wednesday that the Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutors Office raided the Korean offices of Gopax, Korbit, Coinone, Bithumb, Upbit, and eight other businesses that were connected to the collapse of Terra.

South Korean authorities reportedly obtained documents containing data related to TerraUSD (formerly known as UST) and Terra (LUNA) transactions. It is estimated that over 300,000 South Korean investors suffered heavy losses following the severe devaluation and collapse of the token’s price in May.

Some of the victims of the collapse appointed local law firm L.K.B. & Partners to represent them in a legal suit against Terraform Labs alleging that the company defrauded them. More than a hundred people that filed complaints with the South Korean prosecutor’s office had lost a total of roughly $8 million.

Following LUNA and UST’s collapse, South Korea’s National Tax Agency hit Terraform Labs with a huge $78 Million fine for tax evasion. South Korean lawmakers also invited Terraform Labs CEO Do Kwon to a parliamentary hearing regarding the events surrounding the LUNA’s collapse and UST’s depegging.

Although the headquarters of Terraform Labs is in South Korea, the implications of events surrounding the LUNA collapse have had far-reaching consequences for the international crypto space. Investors in the U.S. affected by the LUNA collapse and UST’s depegging have hinted at legal proceedings against Terraform Labs as the public outrage has not been softened by the harsh market downturn.

Featured image source: cryptopotato.com