The Terra debacle is one straight out of television and has been at the center of the 2022 crypto market crash. Prosecutors probing the Terra fiasco in South Korea have asked the Ministry of Justice to issue CEO Do Kwon a “notice upon arrival.” The investigators have also reportedly asked for a travel ban for Terraform Labs co-founder Shin Hyun-seun, or Daniel Shin. The development was reported by the local news outlet Herald Corp.
A “notice upon arrival” will notify investigators if and when Kwon enters South Korean territory. Such measures are taken during an urgent active investigation where the subject has fled the jurisdiction. Kwon is supposedly residing in Singapore at the moment. However, while speaking with Forkast, the prosecutor’s office did not reveal the whereabouts of Kwon.
Shin, along with Kwon, was sued by Terra investors in May after the TerraUST de-peg and the implosion of the Terra network. However, Shin said that he cut ties with the company in 2020.
Terra investigation developments
Shin was recently in the news after South Korean investigative authorities raided his house. His payment platform Chai Corp was also investigated, which was part of a series of raids conducted by the authorities. They also looked into crypto exchanges Upbit, Bithumb, Gopax, etc.
Additionally, investigators also found a Terra subsidiary called FLEXE Corporation. It is claimed that FLEXE was used to channel money from overseas into Terra-affiliated companies. The firm had no presence in the building when the inspectors went to the listed location. Moreover, according to KBS, a South Korean news source, the corporation was a dormant paper company.
Since its fall from grace, Terra has forked its network and renamed the new blockchain “LUNA.” The old blockchain is now called LUNA Classic (LUNC).