Terra Co-founder’s Firm Raided by South Korean Authorities

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Jeff Horseman
Jeff Horseman
Jeff Horseman got into journalism because he liked to write and stunk at math. He grew up in Vermont and he honed his interviewing skills as a supermarket cashier by asking Bernie Sanders “Paper or plastic?” After graduating from Syracuse University in 1999, Jeff began his journalistic odyssey at The Watertown Daily Times in upstate New York, where he impressed then-U.S. Senate candidate Hillary Clinton so much she called him “John” at the end of an interview. From there, he went to Annapolis, Maryland, where he covered city, county and state government at The Capital newspaper. Today, Jeff writes about anything and everything. Along the way, Jeff has covered wildfires, a tropical storm, 9/11 and the Dec. 2 terror attack in San Bernardino. If you have a question or story idea about politics or the inner workings of government, please let Jeff know. He’ll do his best to answer, even if it involves a little math.
  • Chai Corporation is a payments technology firm created by Terra co-founder Daniel Shin.
  • Shin is alleged to have obtained a substantial quantity of pre-issued LUNA tokens.

S. Korean authorities have conducted a search warrant at the headquarters of Chai Corporation. A payments technology firm created by Terra co-founder Daniel Shin. On Tuesday, prosecutors for Seoul Southern District in South Korea confirmed the raid.

There have been rumors that the company’s debut of its Terra payment services may have entailed the inappropriate use of consumers’ personal and private data, which has piqued the curiosity of the prosecutor’s office. It’s estimated that the data breach occurred in 2018.

Pre-issued LUNA Tokens

Moreover, in June 2019, Chai announced that it has partnered with Terra creator Terraform Labs. By incorporating Terra’s stablecoin into its payment app. Since Terra’s stunning collapse in May, Shin and Chai have been attempting to disassociate themselves from it.

Monday’s reports from local media indicated that Shin is the subject of a significant probe by South Korean authorities. Furthermore, the complaint hinges on the fact that Shin is alleged to have obtained a substantial quantity of pre-issued LUNA tokens without first disclosing this fact to normal investors. After then, Shin is reported to have dumped the tokens on the market, making a profit of 140 billion Korean won, or around $106 million.

Shin’s activities are being viewed as a possible breach of local capital markets legislation since authorities have decided to classify LUNA as financial investment security.

Moreover, it has been claimed that prosecutors want to question Shin regarding his alleged involvement in insider trading and price manipulation inside Terra. These new allegations of wrongdoing are adding to the growing pile of legal problems Shin and his company are facing.

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