Terraform Labs Co-Founder Daniel Shin’s Firm Chai Reportedly Raided by Seoul Prosecutors

Terraform Labs Co-Founder Daniel Shin's Firm Chai Reportedly Raided by Seoul Prosecutors

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.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Crypto Crisis Pushes BTC Mining Difficulty To Bottom Spot, Any Possibility Of Reversal?

The low profitability of BTC mining is still puzzling for many crypto fanatics and investors. There’s no surprise here, given the ever-increasing energy costs. Moreover, the bear market is also significantly impacting Bitcoin’s mining difficulty. As for now, making reasonable profits from mining Bitcoin is not probable. This fact, however, doesn’t imply that BTC mining

Bitcoin (BTC) Price Dump Incoming? On-Chain Data Reveals Bottom

Bitcoin (BTC) price failed to hold above $17k and fell to the support near $16,500 again. The BTC price remains under pressure as miner capitulation risk continues to haunt traders looking to make long positions. On-chain data reveals miners are indeed liquidating their Bitcoin holdings due to financial constraints. The effect can be easily seen