Terra Luna News Today: South Korean Prosecutors Searched Terraform Labs Co-Founder’s Home

Written by C, Fiona

Last updated: 2022-07-26

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Shin Hyun-seong, co-founder of Terraform Labs, had his home recently raided by a team of South Korean authorities. The prosecution is said to have obtained terra transaction data from a previous operation that targeted 15 locations, seven of which were cryptocurrency exchanges.

Aiming at Seven Major Cryptocurrency Exchanges

It has been claimed that on July 22nd, authorities in South Korea raided the residence of Terraform Labs co-founder Shin Hyun-seong as part of their investigation into the stunning collapse of Terra’s LUNA cryptocurrency. A report claims that the Seoul prosecutors’ Joint Financial Crimes Investigation Team raided the home of Do Kwon’s co-founder the day after conducting similar operations at 15 other locations, seven of which were cryptocurrency exchanges.

Data on LUNA transactions was apparently obtained by prosecutors during search and seize searches that also targeted Tchai Corporation, where Hyun-seong worked as CEO. The report states that in addition to Flexi Corporation, where Kwon is listed as director, prosecutors have also gone after Kernel Labs, a Terraform Labs subsidiary.

Fraud Suspicions

As a response to the collapse of the UST stablecoin and the LUNA cryptocurrency, regulators in South Korea have moved to impose stricter oversight of the cryptocurrency industry.

Also, in June, cryptocurrency exchanges and other industry stakeholders stated their intention to form a new regulatory agency to prevent another crash like the Terra LUNA one.

Meanwhile, the Chosun Biz story in Korean language states that the prosecutors’ raids on Kwon’s personal and business assets were prompted by lawsuits filed by unhappy LUNA investors who claimed that the CEO had committed fraud.