Terraform Labs Co-Founder Daniel Shin’s Firm Chai Reportedly Raided by Seoul Prosecutors – Bitcoin News
3 min read
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
The Terra blockchain that 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 more of a silent partner like FTX’s 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 instance, on May 28, 2022, the whistleblower Fatman published a thread about Kwon being involved in a premine project that allegedly worked in unison with Shin’s Chai. Fatman detailed that TFL premined a token called SDT and it was allegedly leveraged to cash out via Chai 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 Shin has been summoned as a suspect involving the “breach of duty and violations of the capital markets law for unfair trade 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 Chai Corporation raid follows local KBS reports that note Kwon has been accused by South Korean investigators of manipulating LUNA’s price. The KBS news reports further detailed that Kwon “is now an illegal immigrant” and possibly hiding out in Europe.
What do you think about the report that says Daniel Shin’s Chai Corporation was raided by South Korean authorities? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimer
