The house of Daniel Shin was raided by the authorities to investigate the illegal activity behind Terra’s collapse. As reported in a Bloomberg article.
Chai Corp, a payment app by Co-founder of Terraform Labs, has recently been raided by South Korean prosecutors. Many exchanges were also put into the probe to investigate the mishappenings. These exchanges were involved with the Terra coin, including the Chai app that uses the Terra blockchain to provide cheap transactions for local businesses in Korea.
The report was confirmed by a spokesperson for the Seoul Southern District Prosecutors Office, who said that two other firms that worked with Chai were part of the raid as well. He also refrained from sharing any other details.
Your Capital is at Risk
Many believe that the price of Terra was intentionally manipulated, and there were signs of the same that got South Korean prosecutors to start looking into the matter, as reported by a local television network.
Daniel Shin, along with Do Kwon launched Terraform Labs in 2018 and it got successful very quickly, raising multiple funding rounds, from multiple avenues in a year following the launch.
Former employees involved in the initial development of the project have been summoned as well. One employee among them has revealed that even after insisting on multiple issues with TerraUSD, Kwon pushed the launch of the coin. Consequently, the authorities are interested in finding Kwon’s involvement in any potential price manipulation.
Shin had a better interest in mind than Terra, as he not only resigned from the company in 2020 but also reduced his stake to better focus on his other venture, Chai Corp. After his departure, Do Kwon took control over the company’s workings.
Crypto Exchanges A Part of The Investigation
Daniel Shin wasn’t the only person to be under investigation, but along with him, there were seven local crypto exchanges, including Bithumb and Coinone, that faced a visit from the South Korean Investigators.
The authorities seized material linked to the Terra coin in these raids, which they plan to analyze in order to determine the damage incurred by investors.
The other co-founder of Terraform, Da Kwon, has also been suspected to play with taxes by moving profits from his crypto transaction to an offshore account. He’s currently residing in Singapore and has a travel ban imposed on him by the authorities. Many other integral team members of the project are under the ban as well.
Before its collapse, Terra was among the top 10 cryptocurrencies in the world. But as the crash happened, the crypto managed to wipe out more than $40 billion of investors’ wealth in a couple of weeks. Naturally, there were a lot of questions circulating around the crash, many questioning the founder’s involvement in the incident.
While all of this happened, the company launched a new currency as an upgrade to the previous one. And it received quite good attention, although the recent crash had left investors untrusting of an algorithmic stablecoin.
As of today, the LUNA Classic token is trading at $1.87 with a market cap of $238 million.
Your Capital is at Risk
Read more-
Battle Infinity – New Crypto Presale
- Presale Until October 2022 – 16500 BNB Hard Cap
- First Fantasy Sports Metaverse Game
- Play to Earn Utility – IBAT Token
- Powered By Unreal Engine
- CoinSniper Verified, Solid Proof Audited
- Roadmap & Whitepaper at battleinfinity.io
Source: https://insidebitcoins.com/news/south-korean-prosecutors-raid-daniel-shin-allegations-concern-the-luna-crash