coindesk.com
The home of Terraform Lab’s co-founder, Daniel Shin, in Seoul was raided by 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) 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 Luna (LUNA) 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.