Prosecutors Conduct Additional Search of Chaicorp for 'Terra·Luna Crash'

by Hwang Seoyul

Published 24 Mar.2023 17:14(KST)

Search and Seizure Conducted Last November... Additional Search on the Day Kwon Do-hyung Was Caught

[Asia Economy Reporter Hwang Seoyul] The prosecution has launched an additional raid on the headquarters of Chai Corporation, which had launched the Terra payment service. With Terraform Labs CEO Kwon Do-hyung arrested in Montenegro, the related investigation is expected to accelerate.

[Image source=Yonhap News]

On the afternoon of the 24th, the Seoul Southern District Prosecutors' Office sent prosecutors and investigators to conduct a raid at the Chai Corporation headquarters located in Seongsu-dong, Seoul. Chai Corporation is a company established by Shin Hyun-sung, former co-CEO of Terraform Labs and business partner of CEO Kwon.

According to the prosecution, this raid was carried out to secure additional evidence necessary during the supplementary investigation related to former CEO Shin. The prosecution also raided Chai Corporation in November last year and, after the arrest warrant for former CEO Shin was dismissed in December, summoned him multiple times for further investigation.

Former CEO Shin is suspected of conspiring with CEO Kwon, knowing the possibility of Terra and Luna's price collapse but continuing to issue them without informing investors, and profiting unfairly by selling when prices surged, amounting to approximately 140 billion KRW. The specific charges include fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, violations of the Capital Markets Act, and violations of the Electronic Financial Transactions Act.