South Korean investigators reportedly raid Terraform Labs co-founder’s residence

banner-image

Daniel Shin, the co-founder of Terraform Labs, had his home reportedly raided by South Korean prosecutors as part of a larger fraud investigation.

As per a recent report by Bloomberg, there has been a series of raids conducted by the South Korean Joint Financial and Securities Investigation Team on crypto exchanges and offices. This reportedly included Terra co-founder’s house and his payment application Chai Corp. in the search for any fraudulent activities that triggered the collapse of TerraUSD (UST) and the Terra ecosystem.

To look into a fraud case connected to the collapse of TerraUSD and Luna Classic, the authorities performed investigations earlier this week at 15 venues, including seven crypto exchanges like Bithumb, Upbit, and Coinone.

Is Terraform Labs really innocent? 

According to reports, the investigators looked and came across some proof of employee wrongdoing by Terraform Labs. The investigation into possible fund transfer to other businesses owned or run by Do Kwon in an effort to evade taxes is still ongoing. Therefore, Shin’s company is also under the authorities’ consideration to be searched.

According to recent reports in state media, authorities had reportedly detected an illegal money flow via a subsidiary, Flexi Corporation.

Uppsala Security, a well-known security firm, has claimed that Terraform Labs or the Luna Foundation Guard actually owned or managed the wallet used in the hack that started the run against the algorithmic stablecoin, UST, and its de-pegging.

Notably, after the historic Terra fiasco, South Korea’s justice minister Han Dong-hoon met with top representatives from the US Securities and Commodities Task Force to discuss the establishment of a joint inquiry into financial and crypto-related offenses.

In June, TheCoinRise reported that South Korean investigators imposed Travel Ban on both old and new Terra developers. Moreover, the watchdogs also fined Terraform Labs $78 million for tax evasion in May this year, soon after the major collapse and panic.

June 15, 2024

Gemini Exchange has reached agreement with the New York Attorney General..

June 15, 2024

The Play-2-Earn (P2E) game Notcoin has soared by 15% since the..

June 15, 2024

El Salvador is planning to build a Bitcoin Bank. If done,..

ads-image ads-image