A team of South Korean prosecutors recently raided the home of Shin Hyun-seong, co-founder of Terraform Labs, in an earlier raid targeting 15 locations including seven cryptocurrency exchanges. During the raids, prosecutors reportedly secured Terra’s transaction data.
Seven cryptocurrency exchanges were targeted
South Korean prosecutors investigating the spectacular collapse of Terra’s cryptocurrency LUNA reportedly raided the home of Terraform Labs co-founder Shin Hyun-seong on July 22. According to reports, the raid on Do Kwon’s fellow co-founder came a day after 15 other locations, including seven cryptocurrency exchanges, were similarly targeted by a joint financial crimes investigation team from Seoul prosecutors.
During the search and seizure raid, which also targeted Tchai Corporation, where Hyunseong served as CEO, prosecutors reportedly secured LUNA’s trading data.20} According to the reportother companies targeted by prosecutors included Terraform Labs affiliate Kernel Labs, and Flexi Corporation, where Kwon is a director.
Allegations of Fraud
Following the fall of UST stablecoin and LUNA cryptocurrency, South Korean authorities are seeking to impose a more stringent regulatory framework for cryptocurrencies.
Similarly, industry players such as cryptocurrency exchanges announced in June that plans are currently underway to create an agency mandated to prevent another collapse similar to the Terra LUNA crash.
Meanwhile, according to a report in the Korean-language Chosun Biz, the prosecutor’s investigation against individuals as well as companies associated with Kwon was sparked by a disgruntled LUNA investor who raised allegations of fraud in a lawsuit against the CEO.
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