Prosecutors Also Raided the Home of Terra and Luna Co-Founder Shin Hyun-sung

Including Chaicorporeisyeon and Kernel Labs

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the 'Terra·Luna crash incident' is reported to have also conducted a search and seizure at the residence of Shin Hyun-sung, co-founder of the cryptocurrency issuer.

According to the prosecution on the 21st, the Financial Crime Joint Investigation Team (Head Dan Sung-han) of the Seoul Southern District Prosecutors' Office has been conducting search and seizure operations at a total of 15 locations since the day before, including seven cryptocurrency exchanges such as Upbit and Bithumb. This reportedly included Shin's residence in Seongsu-dong, Seoul, who is a co-founder of Terraform Labs, as well as Chai Corporation operated by him and venture capital (VC) firms that invested in the Terra project.

The prosecution is securing transaction records of Luna and Terra related to Kwon Do-hyung, CEO of Terraform Labs, and associated individuals through the search and seizure.

Terraform Labs had promoted an annual interest rate of 20%, but earlier this month, the price of Terra fell below 1 dollar, causing most of its market capitalization to vanish.

Investors who suffered losses from this incident have filed complaints with the Joint Investigation Team against Terraform Labs, CEO Kwon Do-hyung, and co-founder Shin on charges of fraud, violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), and violation of the Act on the Regulation of Conducting Fund-Raising Business Without Permission.

The Joint Investigation Team summoned a former employee of Terraform Labs as a witness for investigation on the 20th of last month and is accelerating the investigation by imposing travel bans on the staff involved.

This content was produced with the assistance of AI translation services.