South Korea’s Joint Financial and Securities Crime Investigation Team raided the home and offices of TerraForm Labs co-founder Daniel Shin, broadening investigations into the collapse of TerraUSD (UST) stablecoin and LUNA, now Terra Classic (LUNC).
The investigation team on Wednesday performed searches and seizures in 15 firms, including crypto exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax.
The Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutors Office raided the home of Terra co-founder Daniel Shin and his office Chai Corp. and affiliated firms, reported a local news media.
The investigation team searched and seized evidence regarding the fraud allegations that led to the collapse of TerraUSD stablecoin and LUNC. Investigators believe Do Kwon evaded taxes by moving money to different companies, Daniel Shin’s company is also under consideration.
Investigators raided 15 firms, including 7 crypto exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax to collect details on Terra’s founder Do Kwon and employees. Korean authorities also raided the headquarters of Dunamu & Partners which invested in TerraForm Labs in 2018. However, the firm had earlier disclosed that they converted all LUNA to Bitcoin in Feb 2020.
The investigations have uncovered some evidence of wrongdoing by Terra’s employees. In fact, Korean media KBS News reported that Korean prosecutors have detected a suspicious flow of money through another Terra subsidiary called “Flexa”.
Meanwhile, Shin has distanced himself from Do Kwon and Terra and put up a notice on his app. Daniel Shin and Do Kwon are believed to be in Singapore. However, prosecutors are currently investigating Do Kwon’s whereabouts.
Do Kwon and TerraForm Labs are also under investigation in the U.S. for violating federal investor protection rules. The U.S. and South Korean investigators are now collaborating on the collapse of Terra after agencies promised to share investigation data.
Meanwhile, TerraClassicUSD (USTC) and Terra Classic (LUNC) prices continue to surge amid the community-led burning of tokens. The Terra (LUNA) price is currently trading at $1.91, up nearly 3% in the last 24 hours.
TerraForm Labs and Do Kwon are also under investigation for fraud allegations in several cases by Terra investors.
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