Terraform Labs Co-Founder Residence Raided by South Korean Authorities (Report)

As part of the broader investigation of fraud, South Korean prosecutors have raided the house of Terraform Labs’ co-founder, Daniel Shin.

• Bloomberg confirmed a series of raids conducted by the Korean Joint Financial and Securities Crime Investigation Team on crypto exchanges and offices, including the Terra co-founder’s residence and his payment app Chai Corp. over allegations that fraudulent activities may have triggered the demise of TerraUSD (UST) stablecoin.
• The authorities conducted raids in 15 locations, including Bithumb, Upbit, Coinone, and four other exchanges, earlier this week to probe a fraud case linked to the crash of TerraUSD and Luna Classic (LUNC).
• The investigators reportedly searched and discovered some evidence of misconduct by Terraform employees.
• The team is currently looking into the potential transfer of funds to different companies owned or operated by Do Kwon to evade taxes. As such, Shin’s firm is also under consideration.
• State media recently reported that the authorities had detected a suspicious flow of money via a subsidiary – Flexi Corporation.
• Popular security company Uppsala Security recently asserted that the wallet behind the attack initiating the run against the algorithmic stablecoin, UST, and its de-pegging was, in fact, owned or controlled by Terraform Labs or the Luna Foundation Guard.
• In the aftermath of Terra’s historic debacle, South Korean Justice Minister Han Dong-hoon met with chief officials from the US Securities and Commodities Task Force to focus on launching a cooperative investigation against crypto and financial crimes.