Amidst swirling allegations, the US Securities and Exchange Commission (SEC) has received approval to join hands with their South Korean counterparts, as per a recent report. This cooperative effort will further dive into the intriguing case involving Terraform Labs’ co-founder, Daniel Shin, and the prominent payments entity, Chai Corp.
Deepening the Investigation: SEC’s Global Pursuits
At the heart of this inquiry is the SEC’s vigorous hunt for substantial evidence tied to both Daniel Shin and Chai Corp. Their objective? To strengthen their case against the notable Terraform Labs and its erstwhile leader, Do Kwon.
Accusations claim an intricate scheme orchestrated by the parties, which purportedly led to a staggering loss of more than $40 billion in the cryptocurrency realm. Aiding the SEC’s overseas probe, Judge Jed Rakoff has endorsed the deployment of a 1970s treaty, ensuring the smooth international collection of vital evidence.
Kwon’s Troubles: From Montenegro to Many Many Nations
The unfolding drama also sheds light on Do Kwon’s turbulent path. Currently navigating a four-month incarceration period in Montenegro due to passport forgery charges, Kwon finds himself encircled by legal challenges. Criminal charges are looming over him not only in the U.S but also in South Korea, compounded by the ongoing SEC complaint. Interestingly, both Kwon and Terraform refrained from opposing the SEC’s evidentiary requests, actively providing the necessary documentation to fortify their defense stance.
Terraform and Chai
Contrary to allegations, Terraform Labs staunchly refutes any claims of misconduct. However, the waters were muddied when Daniel Shin faced prosecution by South Korean authorities in April. While Shin’s legal counsel vehemently denies his involvement in Terra’s challenging times, the historical connection between Terraform Labs and Chai Corp remains undeniable. With both entities having been birthed by Kwon and Shin, their eventual parting in 2020 saw Kwon helm Terraform while Shin assumed leadership at Chai.
Zooming in: SEC’s Areas of Interest
The SEC’s investigative lens is currently focused on a myriad of areas. These include an in-depth examination of Chai’s payment procedures, its adoption of Terraform’s innovative blockchain and stablecoin, the nature of communication exchanges between the intertwined firms, and vital information shared with Chai’s investor base about their intricate relationship.
