The South Korean prosecution service’s recent raid of 15 locations as part of the probe into the “Terra (LUNAC) incident” saw officers search the home of the Terraform Labs co-founder Daniel Shin.
Prosecutors are widely reported to be looking at evidence pertaining to figures at the top of the Terraform tree. Officers are now reportedly investigating allegations that Shin’s co-founder Do Kwon “intentionally caused” the collapse of Terra ecosystem coins in May this year.
As previously reported, prosecutors began searching at least seven crypto exchanges, including Upbit, Coinone, and Bithumb at 5:30 PM KST (8:30 AM UTC) on July 20.
Channel A reported that the searches continued overnight and were not completed until the morning of July 21, when officers were pictured leaving multiple premises in Seoul with large boxes of seized materials.
The raids were conducted by the Seoul Southern District Prosecutors’ Office’s Joint Financial and Securities Crime Investigation Team.
And, per Newsis and the Kookmin Ilbo, among other outlets, the prosecution conducted a search of Shin’s private residences in the Seongsu district of Seoul. Shin is also famous in South Korea as the founder of the payments platform Chai and the e-commerce platform TMON.
Prosecutors also searched the headquarters of Chai, which has previously entered into partnership deals with Terraform.
They also raided the offices of Kernel Labs, a team of developers who – per current and former employees – worked on key Terra network projects. One was quoted as calling Kernel and Terraform “basically the same company.”
A mysterious so-called “paper company” named FLEXE Corporation was also raided, days after details of the firm were exposed by the national broadcaster KBS.
Prosecutors claim that “suspicious cashflows” passed between FLEXE and the Singapore headquarters of Terraform via a Virgin Islands-based “shell company.”
Kwon is listed as FLEXE’s sole executive director in the company documentation.
Meanwhile, Kwon (now based in Singapore) has taken to Twitter to hit back at his critics. When one Twitter user jokingly bemoaned the fact that their “Do Kwon shitposts” get “500 likes” each time, Kwon retorted that they should “aim higher.”
When another jumped in to ask if Kwon was “poor now,” Kwon replied that he was “down infinite.”
A third baited Kwon with pictures of a bound Yu-Gi-Oh! character, which drew another withering response from the Terraform CEO.
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– Prosecution ‘Investigating Still-Extant South Korean Terraform Subsidiary’, Exchanges Make Self-regulation Proposal
– Mike Novogratz Now Admits That Terra’s Model Was Unsustainable
– Anonymous Pledges to Reveal ‘Do Kwon’s Entire History’ Since He Entered Crypto
– Do Kwon Says He’s No Fraudster and Has ‘Great Confidence’ in Terra 2.0
– Terraform Officials Banned from Leaving South Korea as Do Kwon ‘May Apply for Singaporean Citizenship’
– Big Wallets Exited Anchor/UST While Smaller Fish Continued to Invest – Jump Crypto
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