Terra Founder's Home Raided, S. Korea Intensifies Crypto Collapse Probe
Table of contents
Terra Co-Founder Home Raided in Seoul
According to a Bloomberg report from today, the home of Terraform Labs co-founder Daniel Shin in Seoul was raided by prosecutors as part of a broader investigation over allegations that fraud caused the collapse of the TerraUSD (UST) stablecoin.
Earlier this week, prosecutors investigated 15 crypto offices, including seven local exchanges such as Upbit, Bithumb, and Gopax. The series of raids on crypto exchanges and offices on Wednesday included Terra Shin's home and his payment app company Chai Corp, the Seoul Southern District Prosecutors Office said.
The move comes just a month after the authorities banned current and former employees of Terraform Labs from leaving the country. They are also investigating whether the company's other co-founder, Do Kwon, evaded taxes by moving profits from cryptocurrency transactions to an offshore account.
However, since TerraUSD imploded, Shin has put a notice on his app distancing himself from Do Kwon and TerraLabs. Despite the investigations and allegations, Kwon has gone on to launch Terra 2.0. Following the Terra ecosystem collapse due to the de-pegging of the UST stablecoin in May, about $40 billion of investor funds were wiped off the markets.