South Korean authorities raid Terraform Labs cofounders company Forkast

The Seoul Southern District Prosecutors’ Office raided Chai Corporation, a payments technology company founded by Terraform Labs cofounder Daniel Shin (Shin Hyun-seung), according to a report from Forkast. Earlier this week, it also summoned Shin as part of an investigation into whether he breached capital markets law. Terra’s won-pegged stablecoin KRT into its payment service, Forkast said. Prosecutors allege that the company used customers’ personal information in launching the service, without consent. Shin has attempted to distance himself from Terraform Labs and claimed that he cut ties with both in 2020 to focus on Chai Corporation, which has been operating independently from Terra since Q1 2020, according to the company. He was also due to testify in parliament on Oct. 6 but pulled out the day before.