Shin Hyun Seong, Terraform Labs founder and co-founder was raided recently by South Korean prosecutors. The prosecutors claimed to have seized terra transaction data during an earlier raid, which targeted fifteen places including seven cryptocurrency exchanges.
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.
The prosecutors reportedly obtained LUNA transaction information during the raids that also targeted Tchai Corporation where Hyun-seong was the CEO. According to the report Kernel Labs (an affiliate of Terraform Labs) and Flexi Corporation (where Kwon is listed in the director’s role), are some other businesses targeted by the prosecutors.
Fraud Allegations
South Korea’s authorities sought to impose a more stringent regulatory framework regarding cryptocurrencies after the collapse of the UST stabilitycoin and LUNA cryptocurrency.
In June, cryptocurrency exchanges and other industry participants announced plans to establish a body that would prevent another collapse similar to Terra LUNA.
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.
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