The home of Terraform Lab’s co-founder, Daniel Shin, in Seoul was raided by prosecutors on Wednesday, according to a local media report.
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The raid was conducted as part of a broader investigation over allegations that fraud caused the collapse of the TerraUSD (UST) stablecoin, the report said.
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In May, TerraUSD fell dramatically off its U.S. dollar-peg causing an industry-wide fallout that saw several hedge funds and exchanges fall victim to overexposure. In the same month, some South Korea-based Luna (LUNA) investors filed a complaint against Terraform Labs and co-founder Do Kwon alleging fraud and violations of local securities laws.
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Shin is the latest stakeholder to be raided by Korean authorities. Earlier this week major South Korean crypto exchanges, including Bithumb and Upbit, were raided by authorities.
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In June, prosecutors implemented a travel ban on dozens of people connected to Terraform Labs including former staff members.
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Concurrently, prosecutors are also investigating allegations of tax evasion by Terraform Labs founder Do Kwon.
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Both Shin and Kwon have addresses in Singapore, though it’s unclear if they reside there full time.
UPDATE (22 July, 06:12 UTC): Adds background information in second bullet.
