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News

SEC Seeks Evidence From Daniel Shin And Chai Corp For Terraform Labs Collapse

August 18, 2023 - Around 2 mins mins to read

Key Points:

  • The judge allowed the SEC to question Korean co-founder Daniel Shin and collect evidence at the relevant company Chai Corp.
  • The SEC wanted to question Shin about Kwon’s role at Chai, and how Chai uses the Terra blockchain.
  • This will require cooperation from the Korean government.
According to Bloomberg News, U.S. District Judge Jed Rakoff has ruled that the US Securities and Exchange Commission (SEC) can seek assistance from the South Korean government to question Daniel Shin, co-founder of Terraform Labs, and collect evidence from payment company Chai Corp.
SEC Seeks Evidence From Daniel Shin And Chai Corp For Terraform Labs Collapse

This regulator wants to question Shin and obtain documents from Chai to help prove their charges against Terraform and its former CEO, Do Kwon. Do Kwon, who is currently serving a four-month sentence in Montenegro for possessing a fake passport, faces criminal charges in both the United States and South Korea, and a lawsuit from the SEC.

The regulator said in the submission that it wanted to question Shin about Kwon’s role at Chai, how Chai uses the Terra blockchain, and Chai’s revelations about their relationship with Terraform.

Previously, Daniel Shin was prosecuted by Korean prosecutors in April this year. At the time, his attorney said he had nothing to do with Terra’s failure.

Do Kwon and Daniel Shin co-founded Chai, which initially shared offices and staff with Terraform. The two companies split in 2020, Do Kwon becomes CEO of Terraform, and Shin stayed in Chai as CEO.

In its lawsuit, the regulator it accused Kwon of falsely claiming that Chai used Terraform’s blockchain and its TerraKRW stablecoin to process millions of retail transactions for Korean consumers.

In a filing last month, the SEC said it was seeking testimony and testimony about how Chai handles payments and uses Terraform’s blockchain and stablecoins, communications between the two companies, and how the relationship works relationship is disclosed to Chai’s investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

News

SEC Seeks Evidence From Daniel Shin And Chai Corp For Terraform Labs Collapse

Key Points:

  • The judge allowed the SEC to question Korean co-founder Daniel Shin and collect evidence at the relevant company Chai Corp.
  • The SEC wanted to question Shin about Kwon’s role at Chai, and how Chai uses the Terra blockchain.
  • This will require cooperation from the Korean government.
According to Bloomberg News, U.S. District Judge Jed Rakoff has ruled that the US Securities and Exchange Commission (SEC) can seek assistance from the South Korean government to question Daniel Shin, co-founder of Terraform Labs, and collect evidence from payment company Chai Corp.
SEC Seeks Evidence From Daniel Shin And Chai Corp For Terraform Labs Collapse

This regulator wants to question Shin and obtain documents from Chai to help prove their charges against Terraform and its former CEO, Do Kwon. Do Kwon, who is currently serving a four-month sentence in Montenegro for possessing a fake passport, faces criminal charges in both the United States and South Korea, and a lawsuit from the SEC.

The regulator said in the submission that it wanted to question Shin about Kwon’s role at Chai, how Chai uses the Terra blockchain, and Chai’s revelations about their relationship with Terraform.

Previously, Daniel Shin was prosecuted by Korean prosecutors in April this year. At the time, his attorney said he had nothing to do with Terra’s failure.

Do Kwon and Daniel Shin co-founded Chai, which initially shared offices and staff with Terraform. The two companies split in 2020, Do Kwon becomes CEO of Terraform, and Shin stayed in Chai as CEO.

In its lawsuit, the regulator it accused Kwon of falsely claiming that Chai used Terraform’s blockchain and its TerraKRW stablecoin to process millions of retail transactions for Korean consumers.

In a filing last month, the SEC said it was seeking testimony and testimony about how Chai handles payments and uses Terraform’s blockchain and stablecoins, communications between the two companies, and how the relationship works relationship is disclosed to Chai’s investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.