Terraform Labs Co-Founder Daniel Shin’s Firm Chai Reportedly Raided by Seoul Prosecutors – Bitcoin News

Following the collapse of FTX, law enforcement officials are still dealing with the Terra blockchain fiasco. A new report claims Terraform Labs (TFL) co-founder Daniel Shins company Chai Corporation was raided by South Korean investigators.

Terraform Labs Co-Founder’s Company Chai Reportedly Raided by South Korean Law Enforcement

The Terra blockchain that collapsed last May was a crypto project co-founded by two individuals Do Kwon and Daniel Shin (Shin Hyun-seung). Similar to the FTX fiasco, Shin was more of a silent partner like FTXs co-founder Gary Wang.

A report from Forkast details that the Seoul Southern District Prosecutors’ Office has raided Shins company Chai Corporation. The firm Chai is a payments company that was created by TFL co-founder Shin and it has been said that Chai was closely connected to TFL operations.

Terraform Labs Co-Founder Daniel Shin's Firm Chai Reportedly Raided by Seoul Prosecutors
Chai Corporation founder Daniel Shin (Shin Hyun-seung) co-founded Terraform Labs with Do Kwon.

For instance, on May 28, 2022, the whistleblower Fatman published a thread about Kwon being involved in a premine project that allegedly worked in unison with Shins Chai. Fatman detailed that TFL premined a token called SDT and it was allegedly leveraged to cash out via Chai using the Terra blockchains Korean won (KRW) token.

Other reports were curious about the Chai and TFL partnership after monitoring the KRW tokens (also known as KRT) relationship with Chai. Forkast details that local reports have said Chais KRW token (KRT) functionality was discontinued in March 2022.

Forkast noted that South Korean prosecutors said on Monday Shin has been summoned as a suspect involving the breach of duty and violations of the capital markets law for unfair trade practices.

Furthermore, South Korean law enforcement reportedly raided Shins home this past July. Shin has denied the premine allegations and has said that Chai Corporation has been separate from TFL since the first quarter of 2020.

The alleged Chai Corporation raid follows local KBS reports that note Kwon has been accused by South Korean investigators of manipulating LUNAs price. The KBS news reports further detailed that Kwon is now an illegal immigrant and possibly hiding out in Europe.

Tags in this story
Chai and TFL partnership, Chai Corporation, Daniel Shin, do kwon, Fatman, Fatman Accusations, Forkast, Forkast Report, KBS News, Korean Won Token, KRT, SDT, Seoul Prosecutors Office, Shin Hyun-seung, South Korean investigators, South Korean law enforcement, terraform labs, TFL

What do you think about the report that says Daniel Shin’s Chai Corporation was raided by South Korean authorities? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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