According to a local media report, the Seoul home of Terraform Lab co-founder Daniel Shin was raided by prosecutors.
According to Local Media, Terra Founder’s Home Has Been Raided Due to Fraud Allegations
In the report, the raid in question, TerraUSD (UST) The stablecoin’s collapse was reportedly part of a general investigation into fraud.
In May, the UST fell drastically from the US dollar peg, causing several hedge funds and exchanges to suffer from overexposure to the token.
Based in South Korea in the same month LUNA filed a complaint against investors Terraform Labs and its co-founder Do Kwon for alleged fraud and violations of local securities laws.
Shin becomes the latest LUNA shareholder to be raided by Korean authorities. Earlier this week, South Korean majors, including Bithumb and Upbit, cryptocurrency The stock markets had also been raided by the authorities.
In June, prosecutors imposed travel bans on dozens of people affiliated with Terraform Labs, including former employees.
At the same time, prosecutors are investigating allegations of tax evasion by Terraform Labs founder Do Kwon.
Both Shin and Kwon have addresses of residence in Singapore, although it is unclear whether they reside there full-time.
The LUNA collapse shocked the cryptocurrency market in early May, resulting in sudden drops in overall crypto prices.
*Not investment advice.