Korean Investigators Raid Home Of Terra Co-Founder As Investigation Of Terra Collapse Heats Up

Daniel Shin comes under scrutiny in the Terra collapse investigation.

In a report today, Bloomberg has confirmed that investigators included the home of Terra Co-founder Daniel Shin and the offices of his payment app Chai Corp. in the raid on Wednesday that saw prosecutors seize records of several crypto exchanges.

According to the report, investigators also went through two other firms affiliated with Shin as part of their latest investigative efforts into the Terra debacle in May.

It is worth noting that Korean authorities launched an investigation into the Terra collapse as they suspect that the firm may have defrauded investors and Terraform Labs Founder Do Kwon may be guilty of tax evasion.

As part of their efforts, on Wednesday, investigators carried out a raid on several crypto exchanges. As reported by The Crypto Basic, investigators seized records in their search for evidence that could point to wrongdoing on the part of Kwon, Terraform Labs, and affiliated firms.

Notably, in June, Kwon, on his part, had granted an interview with the Wall Street Journal, where he denied any wrongdoing. “There is a difference between failing and running a fraud,” Kwon said, explaining that he took each action with the conviction that Terra USD (UST) would thrive and made no attempt to deceive investors.

Despite these statements, it is worth noting that authorities discovered a shell company allegedly used by Terra to launder funds. The firm, Flexi Corporation, allegedly received proceeds from OTC sales made by Terra.

Notably, Kwon and Terraform Labs are also under investigation in the US. The US SEC believes Terra may have breached investor protection rules in how they marketed the UST stablecoin.

It is worth noting that South Korea and US prosecutors met on July 6 to enhance communications in investigating the Terra ecosystem collapse.

At the time of writing, Kwon and Shin are believed to be in Singapore. Despite the investigations and allegations, Kwon has gone on to launch Terra 2.0. Notably, following the Terra ecosystem collapse due to the de-pegging of the UST token in May, about $40 billion of investor funds were wiped off the markets.

– Advertisement –