SEC seeks to question Terraform Labs co-founder Daniel Shin in Korea

The United States Securities and Exchange Commission has been approved a movement to seek help from South Korea to question Terraform Labs co-founder Daniel Shin– as it constructs its case against the company and co-founder Do Kwon. On Aug. 16, District Judge Jed Rakoff gave the SECs July 10 motion asking if it could seek to question the Terra co-founder, along with asking for documents from the Seoul-based payments service provider Chai Corporation he established. In its July filing the SEC stated it wants to question Shin on Kwons function at Chai, how Chai utilized the Terra blockchain and Chais disclosures about its relationship with Terraform.It also wants to know why Chai separated from Terraform. Chai was founded by Shin and Kwon in mid-2019 and shared workplaces and personnel with Terraform until the two companies divided in 2020. Excerpt of a few of the questions the SEC looks for to ask Shin. Source: CourtListenerTerraform Labs and Kwon didnt oppose the SECs motion and included their own questions and file requests– they have actually previously rejected the SECs allegations.The SEC sued Terraform and Kwon in February alleging its now-collapsed cryptocurrencies TerraClassicUSD (USTC) and Terra Luna Classic (LUNC)– formerly Terra (LUNA) and TerraUSD (UST)– were fraudulent.It also alleged Kwon and Terraform incorrectly promoted that Chai used the Terra blockchain to process and settle transactions.The SEC claimed Terraform and Kwon fabricated deals of its Korean won pegged stablecoin TerraKRW (KRT) to give the impression that Chai was utilizing the blockchain.Related: Judge signs order enabling Terraform Labs to subpoena FTXTerras interconnected crypto community collapsed in May 2022 erasing around $40 billion in value, bringing the rest of the crypto market with it.In April, South Korean prosecutors struck Shin with multiple scams charges declaring he hid the threats of purchasing Terraforms cryptocurrencies.Kwon is currently in Montenegro serving a four-month jail stint for trying to leave the nation utilizing a phony Costa Rican passport.Along with the SECs suit, Kwon also faces criminal charges in the U.S. and South Korea. Both countries have requested his extradition.Asia Express: Chinas risky Bitcoin court decision, is Huobi in difficulty or not?