Financial authorities have begun investigating a massive cryptocurrency crash involving TerraUSD and its sister token Luna as they seek to determine ways to prevent similar losses for investors in the future.

A related source told local media on Tuesday investigators have asked domestic cryptocurrency exchanges to submit relevant data, including the scope of local investors, transaction volume and price trends.

Some 280-thousand traders in Korea are believed to have invested in TerraUSD and Luna through local exchanges.

Authorities are also looking into whether Korean service providers implemented appropriate policies and protective measures after the latest debacle.

Chairman of the Financial Services Commission Koh Seung-beom told lawmakers that although governmental recourse is limited due to a lack of legal authority, officials are keeping a close eye on the numbers such as prices or transaction trends.