A team of South Korean prosecutors recently raided the home
of Terraform Labs co-founder Shin Hyun-seong. During an earlier raid
that targeted 15 places, including seven cryptocurrency exchanges, the
prosecutors reportedly secured terra transaction data.
Seven Cryptocurrency Exchanges Targeted
South Korean prosecutors investigating the spectacular collapse
of Terra’s LUNA cryptocurrency reportedly raided the home of Terraform
Labs co-founder Shin Hyun-seong on July 22. According to a report, the
raid on Do Kwon’s fellow co-founder’s home came a day after 15 other
places, including seven cryptocurrency exchanges, were similarly
targeted by Seoul prosecutors’ Joint Financial Crimes Investigation
Team.
During the search and seize raids, which also targeted Tchai
Corporation, where Hyun-seong served as CEO, the prosecutors reportedly
secured LUNA transaction data. According to the report,
the other companies targeted by prosecutors include Kernel Labs, an
affiliate of Terraform Labs, and Flexi Corporation where Kwon is listed
as director.
Fraud Allegations
Following the fall of the UST stablecoin and the LUNA cryptocurrency,
authorities in South Korea have sought to impose a tougher regulatory
framework for cryptocurrencies.
Similarly, industry players such as cryptocurrency exchanges announced
in June that plans to create a body mandated with preventing another
collapse, similar to the Terra LUNA crash, were now on the cards.
Meanwhile, as per the Korean language Chosun Biz report, the
prosecutors’ raids on individuals as well as companies associated with
Kwon were sparked by disgruntled LUNA investors who raised fraud
allegations in their lawsuits against the CEO.
source link : https://news.bitcoin.com/report-south-korean-prosecutors-raid-home-of-terraform-labs-co-founder/
