Daniel Shin, a co-founder of Terraform Labs, was the target of a raid by South Korean authorities. The authorities have heightened their investigation into possible illegal activities that may have led to the collapse of Terra.
On Wednesday, South Korean authorities undertook a series of raids. They looked into crypto exchanges (Upbit, Bithumb, Gopax, etc.) and offices. This included Shin’s house and his payment platform Chai Corp. The Seoul Southern District Prosecutors Office confirmed the development to Bloomberg via text. In addition, the police also visited two firms related to Terra. However, additional details are not available as the investigation is ongoing.
After the implosion of TerraUSD, Shin distanced himself from Terra and its CEO, Do Kwon. Shin put up a notice for the same in his payments app.
This comes after a month since Terra forbids their employees from leaving the country. Investigators are also looking into Kwon’s finances, and Kwon may have evaded taxes by moving profits to an offshore account, as reported by Yonhap, a local news agency.
Terra’s money-channelling subsidiary
The fall of Terra (LUNC, previously LUNA) has left a gash on the crypto industry. Recently investigating agencies found a subsidiary of Terra called FLEXE Corporation. Authorities claim that FLEXE was used to channel money from overseas to Terra-affiliated companies. Upon visiting the registered address, the officials found that the company did not have any presence in the building. Moreover, according to KBS, a South Korean news outlet, the firm was a non-operative paper company.
Additionally, authorities claim to have tracked cash movements that started in Terra’s Singapore base. The money amounts to 6 billion Korean won (about $4.5 million) and 12 billion won (about $9 million). The funds then traveled to their office in the British Virgin Islands before being sent to FLEXE in South Korea and other Terra affiliates.
At press time, the Original LUNA, now called LUNC, was trading at $0.00010276.