Daniel Shin’s home was raided by authorities to investigate the illegal activity behind Terra’s collapse. As stated in a Bloomberg article.
Chai Corp, a payment app from the co-founder of Terraform Labs, was recently raided by South Korean prosecutors. Many exchanges were also put to the test to investigate the mishaps. These exchanges were part of the piece of landincluding the Chai app which uses the Terra blockchain to provide cheap transactions to local businesses in Korea.
The report was confirmed by a spokesperson for the Seoul Southern District Prosecutors Office, who said two other companies that worked with Chai were also part of the raid. He also refrained from sharing other details.
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Many believe Terra’s price was intentionally manipulated, and there were signs of the same that prompted South Korean prosecutors to start looking into the matter, as reported by a local TV station.
Daniel Shin, along with Do Kwon, launched Terraform Labs in 2018 and it was very successful very quickly, raising multiple rounds of funding, from multiple avenues within a year of launch.
Former employees involved in the initial development of the project were also summoned. An employee among them revealed that even after insisting on multiple issues with TerraUSD, Kwon pushed the launch of the coin. Therefore, authorities are interested in finding out 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 business, Chai Corp. After he left, Do Kwon took control of the operation of the company.
Crypto exchanges are part of the investigation
Daniel Shin was not the only person under investigation, but along with him, seven local crypto exchanges, including Bithumb and Coinone, were visited by South Korean investigators.
Authorities seized equipment related to the piece of land in these raids, which they plan to analyze in order to determine the damage suffered by investors.
Terraform’s other co-founder, Da Kwon, was also suspected of playing tax games by transferring profits from his crypto transaction to an offshore account. He currently resides in Singapore and is subject to a travel ban imposed by the authorities. Many other members of the full project team are also banned.
Before its collapse, Terra was among the top 10 cryptocurrencies in the world. But when the crash happened, the crypto managed to wipe out over $40 billion of investors’ wealth in a matter of weeks. Naturally, many questions have swirled around the accident, with many questioning the founder’s involvement in the incident.
While all this was happening, the company launched a new currency as an upgrade to the previous one. And it has received pretty good attention, although the recent crash has left investors wary of an algorithmic stablecoin.
As of today, the LUNA Classic Token trades at $1.87 with a market cap of $238 million.
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