NewsletterTerra Do Kwon, Daniel Shin Ordered “Notification Upon Arrival” And “Departure Ban”
South Korea’s crime investigation team has issued “notification upon arrival” and “departure ban” notices to TerraForm Labs former and current executives including Do Kwon and Daniel Shin. South Korea’s Ministry of Justice approves prosecutors’ request for further investigation into fraud allegations against TerraForm Labs and its executives.
Prosecutors Demand Investigation into Terra Founders Do Kwon and Daniel Shin
South Korea’s Ministry of Justice has approved the request of the Seoul Southern District Prosecutors’ Joint Financial and Securities Crime Investigation Team to issue a “notification upon arrival” on Terra’s Do Kwon, reported local news media on July 27. Also, a “departure ban” on current and former executives of TerraForm Labs including co-founder Daniel Shin and former Vice President Kim Mo.
The notices will help the crime investigation team to further investigate Do Kwon upon his arrival from Singapore on fraud and money laundering allegations. Moreover, other executives will also be investigated in relation to TerraUSD (UST) and Terra (LUNA) collapse.
Furthermore, Do Kwon is accused of continuing to offer Terra (LUNA) tokens without informing investors about its investment risks. He is also required to attend the court proceedings on lawsuits filed against him by Terra investors.
Meanwhile, Daniel Shin has distanced himself from Do Kwon and Terra and put up a notice on his Chai app. Last week, the investigation team raided the home and offices of Daniel Shin in relation to the Terra-LUNA crash. Transaction records and documents related to TerraForm Labs were also collected in a search and seizure at 15 crypto companies. The crypto exchanges include Upbit, Bithumb, Coinone, Korbit, and Gopax.
Class Action Against TerraForm Labs and its Founders in the U.S.
Three class action lawsuits have been filed in the U.S. by top law firms Scott+Scott Attorneys at Law LLP, The Rosen Law Firm, and Bragar Eagel & Squire against TerraForm Labs, Do Kwon, and affiliates.
Terra insider “FatMan” yesterday confirmed in a tweet that they will be joining the Scott+Scott class action lawsuit as a plaintiff, along with lead plaintiff Nick Patterson. They are also preparing another class action against Do Kwon for fraud against thousands of investors.
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