Prosecutors Raid Terra Co-Founder’s Home

Terraform Labs, a blockchain entity that has recently been accused of illegal activity, is under severe lockdown by the South Korean Regulatory bodies. As a result, both the founder Do Kwon and co-founder Daniel Shin are being questioned.

Recently, the residence of Daniel Shin was raided by the prosecutors to find evidence linking Daniel with the illicit activities that took place within the Terraform Labs. Police have gone out of their way to raid two other such firms that might possibly have some kind of connection with Terraform Labs.

It was not only Terraform Labs that was under the radar of the authorities, but a total of seven such firms are being prosecuted at the moment for fraud and tax evasion. It has been found that the founder of Terraform Labs, Do Kwon manipulated the price of TerraUSD and is therefore being accused of tax evasion; Daniel Shin, on the other hand, is only being questioned on the basis of suspicion.

But from some other source, it has now been confirmed that although Daniel did co-found Terraform Labs with Kwon back in 2018, since then, he has limited himself from the firm as well as Kwon, but this statement still needs to be validated by the authorities.

Collapse of TerraUSD

Insider trading is never good for a financial asset or for the sustaining of that financial market in which this activity is taking place. The same thing happened with TerraUSD; someone was pulling all the right strings at the right time, which might have provided them with tons of benefits but eventually became the reason for the collapse of the entire TerraUSD network.

Police and the prosecutors believe that it was Kwon who did all of that, and given the fact that Daniel was a partner with Kwon, the essence of doubt also lingers over his head. On top of everything else, a flight ban has been imposed on the workers as well as the founders of the Terraform Labs until this whole thing can be sorted.

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