News - SEC sues co-founder Daniel Shin
The recovery process of the crashed crypto project Terra is still ongoing. The SEC has now called in a key figure. What does Daniel Shin know?
The SEC wants the business relationship between Chai and Terra investigations. A subpoena from Terraform Labs co-founder Daniel Shin has now been granted by a district judge. It must also address the reasons why the payment service provider separated from Terraform before the stablecoin project crashed in 2020.
The SEC sued Terraform and Do Kwon in February. Terraform's former CEO is accused of fraud. According to the SEC, Kwon and Terraform allegedly falsified transactions to prove that Chai was using the Terra blockchain to process payments.
The Terra crypto project collapsed in May 2022, causing $40 billion US dollars in damages. In April, South Korean prosecutors filed multiple fraud charges against Shin.
Kwon is currently serving a four-month prison sentence in Montenegro after trying to leave the country with a fake passport. He has been charged in the U.S. and South Korea. Both countries have requested his extradition.