Terra Co-Founder Daniel Shin’s Home Raided by South Korean Authorities – Ethereum

• South Korean authorities have raided the home of Terraform Labs co-founder Daniel Shin.
• Officials also recently sent prosecutors and investigators to seven cryptocurrency exchanges in connection with the case.
• The Terraform Labs investigation is ramping up, but it is far from over.

South Korean officials have taken another step forward in the investigation into Terraform Labs. Local media outlets report that authorities raided the home of co-founder Shin Hyin-seong, in connection with allegations of fraud.

The raid took place on July 21, with the Seoul Southern District Prosecutor’s Office’s Joint Financial and Securities Crime Investigation Team conducting it. The team also seized and searched 15 cryptocurrency exchanges and affiliates one day earlier.

The prosecution team also sent prosecutors and investigators to seven major domestic cryptocurrency exchanges, including Upbit, Coinone, Bithumb, Korbit, and Gopax. The idea was to secure transaction details related to the CEO Do-Kwon and the employees of Terraform Labs. Regarding this examination of finances, the report said that

“it is reported that a large amount of money from Terra in 2019 went through tax havens and flowed to various companies, and it is known that the prosecution considers Shin’s company as one of them.”

The whereabouts of Do Kwon are also currently unknown. Terra developers have been banned from leaving South Korea, as officials are keen on getting to the bottom of the case.

Terraform Labs Woes Will Serve as a Reminder to Crypto Industry

The onslaught of lawsuits, investigations, and general discussion on stablecoin following the crash of UST has set the crypto world — and the wider one — reeling. Do Kwon’s confident assertions before the market crash has left a bad taste in the mouth of investors, and many projects are moving en masse from Terra to Polygon.

The negative ramifications of the TerraUSD crash have been far-reaching and wide. The crash has led to exchanges like Binance.US being hit with a class action lawsuit. Those inside the crypto industry will regret being associated with the Terraform ecosystem, and the incident serves as a reminder of the caution needed in the space.

The investigation into Terraform Labs is also just getting started. Both crypto companies and investors will keep a close eye on it, as the outcome will no doubt have an impact on the future of the market.