On Wednesday, Daniel Shin’s residence would have been searched by prosecutors in Seoul, according to local media reports.
- According to the newspaper, the operation is part of a broader investigation into the bankruptcy of the stablecoin known as TerraUSD (UST).
- When TerraUSD divested from its peg to the US dollar in May, it caused overexposure from various hedge funds and exchanges. During the same month, South Korean Luna (LUNA) cryptocurrency investors filed a lawsuit against Terraform Labs and its co-founder, Do Kwon.
- Shin has been the subject of a search by the Korean authorities. This week, South Korean authorities raided cryptocurrency exchanges Bithumb and Upbit.
- In June, prosecutors barred dozens of Terraform Labs employees from leaving the country.
- Additionally, prosecutors are investigating allegations that Do Kwon committed tax fraud.
- Both Shin and Kwon have addresses in Singapore, although it is not known if they actually reside there.