Terra-Related Entities Raided By South Korean Prosecutors

15 entities linked to Terra, including Co-Founder Daniel Shin's home, were raided by South Korean Authorities earlier this week.

Crypto exchanges Bithumb, Upbit, and payment platform Chai were also part of the operation. It has since been understood that this was done due to allegations of insider trading, and not directly because of Luna's collapse.

Also Read: What Happened To $LUNA? How It Crashed More Than 95% From Its All-Time High

Terra Owes Millions in Taxes

This news comes following the destruction of the Terra ecosystem, thanks to the token's flawed algo-stable mechanism.

Since then, the national tax agency of South Korean has reportedly charged Terraform Labs with a ~$80 Million penalty due to tax evasion.

Hundreds of victims have also appointed a local firm to represent them in a legal battle against the foundation, as well as Do Kwon, alleging fraud. They claim that the pegging mechanism behind $UST, Terra's stablecoin, was misrepresented.

Policymakers in the country have also leveraged the situation to ramp up regulations against stablecoins.

Prosecutors also claim that former employees are trying to leave the country, and the co-founders have moved profits to offshore accounts.

https://twitter.com/stablekwon/status/1535811515978108928

Do Kwon, who is based in Singapore, has since rebuked allegations of making profits from insider trading, and continues to remain active on twitter.

Also Read: Nobody Is Too Big To Fail; The Fall Of Celsius And 3 Arrows Capital

[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]

Featured Image Credit: Cryptoslate