Following the collapse of FTX, law enforcement officials are still dealing with the Terra blockchain fiasco. A new report claims Terraform Labs (TFL) co-founder Daniel Shin’s company Chai Corporation was raided by South Korean investigators.
Terraform Labs co-founder’s company Chai reportedly raided by South Korean law enforcement
Terra Blockchain which collapsed last May was a crypto project co-founded by two individuals – Do Kwon and Daniel Shin (Shin Hyun-seung). Similar to the FTX fiasco, Shin was a silent participant like FTX co-founder Gary Wang.
A report from Forkast details that the Seoul Southern District Prosecutors’ Office has raided Shin’s company Chai Corporation. The firm Chai is a payments company that was created by TFL co-founder Shin and it has been said that Chai was closely connected to TFL operations.
For example, on May 28, 2022, whistleblower Fatman published a thread Regarding Kwan’s involvement in a premine project that allegedly worked in conjunction with Shin’s Chai. Fatman elaborated that TfL preferred a token called SDT and allegedly took advantage of it to withdraw cash through TEA using the Terra blockchain’s Korean Won (KRW) token.
Other reports were curious about the Chai and TFL partnership after monitoring the KRW token’s (also known as KRT) relationship with Chai. Forkast details that local reports have said Chai’s KRW token (KRT) functionality was discontinued in March 2022.
Forkast noted that South Korean prosecutors said on Monday that Shin has been summoned as a suspect linked to “violations of capital markets law for breach of duty and unfair business practices.”
Furthermore, South Korean law enforcement reportedly raided Shin’s home this past July. Shin has denied the premine allegations and has said that Chai Corporation has been separate from TFL since the first quarter of 2020.
The alleged raid by Tea Corporation comes after local KBS reported that Not Kwon has been accused by South Korean investigators of manipulating Luna’s price. KBS news further elaborated that Kwon is “now an illegal immigrant” and possibly hiding in Europe.
