Terra’s co-founder and developer Daniel Shin along with representatives of the digital asset industry would bear witness before South Korea’s financial audit committee in the upcoming annual state audit, local sources reported.
According to reports, witnesses for a three-week parliamentary audit beginning on October 4 will include Tchai Holdco general manager Shin Hyun-Seung, DSRV Labs CEO Kim Ji-Yoon, Bithumb Chairman Lee Jeong-hoon, and Dunamu CEO Lee Sirgoo.
“We are internally assessing how to prepare”, an industry official told the newspaper.
Kwon and Shin founded Terraform Labs in 2018 with the goal of competing with PayPal and other industry giants. Later that year, the two raised $32 million, and in 2019, an ICO raised $62 million.
In March 2020, Shin took a step back from his ownership of Terraform Labs and resigned as CEO in order to focus on his other venture Chai. Do Kwon, the other co-founder, then assumed leadership of the company.
According to a Bloomberg article quoting local media, after Terra’s fallout, Shin’s home in Seoul was searched for potential illicit behavior. Investigators reportedly also went to the Chai office, a mobile payment app Shin founded in 2019.
The raids are a part of an ongoing investigation on claims that Kwon purposefully brought TerraUSD to its demise.
In order to estimate the extent of investor losses, a team of South Korean detectives also went to the offices of seven local cryptocurrency exchanges, including Upbit, Bithumb, and Coinone, and seized transaction records and other data.
Terra’s “Wanted Man” Deny Rumours Of Cashing Out
Shin’s colleague and partner Do Kwon is currently a wanted man by Interpol who allegedly tried to transfer several millions worth of BTC across exchanges. Upon discovery, prosecutors have frozen transactions on the suspicion of money laundering and concealment.
After a South Korean court issued an arrest order for Do Kwon, he denied attempting to pay out the millions of dollars worth of Bitcoin. Kwon criticized media organizations for disseminating “misinformation” about him in a recent tweet.
Kwon and five other Terraform Labs affiliates are charged with breaking the country’s capital markets law by South Korean authorities. Kwon is also accused of other offenses that the prosecution has not yet made public.