South Korean prosecutors raid home of Terraform Labs co-founder – Regulation Bitcoin News
A team of South Korean prosecutors recently raided the home of Terraform Labs co-founder Shin Hyun-seong. During a previous raid that targeted 15 locations, including seven cryptocurrency exchanges, prosecutors allegedly secured terra transaction data.
Seven cryptocurrency exchanges targeted
South Korean prosecutors investigating the spectacular collapse of Terra’s LUNA cryptocurrency reportedly raided the home of Terraform Labs co-founder Shin Hyun-seong on July 22. According to a report, the raid on Do Kwon’s co-founder’s home came a day after 15 other locations, including seven cryptocurrency exchanges, were similarly targeted by the Seoul Prosecutor’s Office’s Joint Financial Crimes Investigation Team.
During the search and seizure raids, which also targeted Tchai Corporation, where Hyun-seong served as CEO, prosecutors allegedly secured LUNA transaction data. According to the report, the other companies targeted by prosecutors include Kernel Labs, a subsidiary of Terraform Labs, and Flexi Corporation where Kwon is listed as a director.
Claims of fraud
Following the fall of the UST stablecoin and the LUNA cryptocurrency, authorities in South Korea have attempted to introduce a tougher regulatory framework for cryptocurrencies.
Similarly, industry players such as cryptocurrency exchanges announced in June that plans to create a body with a mandate to prevent another collapse, similar to the Terra LUNA crash, were now on the cards.
Meanwhile, according to the Korean Chosun Biz report, prosecutors’ raids on individuals as well as companies associated with Kwon were sparked by disgruntled LUNA investors who raised fraud allegations in their lawsuits against the CEO.
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