South Korean Prosecutors Raid Terra Co-Founder Daniel Shin's Home: Report

The home of Terraform Lab’s co-founder, Daniel Shin, in Seoul was raided by South Korean prosecutors on Wednesday, according to a local media report.

• The raid was conducted as part of a broader investigation over allegations that fraud caused the collapse of the terraUSD (UST) algorithmic stablecoin, the report said.
• 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 una (LUNA) token investors filed a complaint against Terraform Labs and co-founder Do Kwon alleging fraud and violations of local securities laws.
• 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.
• In June, prosecutors implemented a travel ban on dozens of people connected to Terraform Labs, including former staff members.
• Concurrently, prosecutors are also investigating allegations of tax evasion by Terraform Labs founder Do Kwon.
• 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.