The U.S. Securities and Exchange Commission (SEC) has secured approval to collaborate with South Korea in its probe against Terraform Labs and its co-founders, Daniel Shin and Do Kwon. This decision, sanctioned by District Judge Jed Rakoff on August 16, allows the SEC to question Shin and access documents from Chai Corporation, a Seoul-based payments provider he founded.
Shin and Kwon co-founded Chai in 2019, initially operating closely with Terraform. By 2020, the companies had diverged. The SEC’s investigation focuses on Chai’s use of the Terra blockchain and its relationship statements with Terraform. The reasons behind Chai’s separation from Terraform are also under scrutiny.
While Terraform Labs and Kwon didn’t oppose the SEC’s motion, they presented their own queries and have previously refuted the SEC’s claims. Accusations suggest that they falsely stated Chai’s use of the Terra blockchain for transactions.
In May 2022, the…
