SEC Seeks to Question Terraform Co-Founder in Korea

Posted on by

• The United States Securities and Exchange Commission (SEC) has been granted a motion to question Terraform Labs co-founder Daniel Shin on Do Kwon and Chai Corporation’s relationship with the firm.
• The SEC is seeking documents from Chai Corporation, which was founded by Shin and Kwon in mid-2019, as well as answers to questions about Kwon’s role at Chai, its use of the Terra blockchain, and disclosures about its relationship with Terraform.
• Terraform Labs and Kwon have previously denied the SEC’s allegations.

The SEC Seeks To Question Terraform Labs Co-Founder Daniel Shin

The United States Securities and Exchange Commission (SEC) has been granted a motion to seek assistance from South Korea to question Terraform Labs co-founder Daniel Shin in relation to Do Kwon and Chai Corporation’s relationship with the firm.

Request for Documents From Chai Corporation

In addition to questioning Shin, the SEC is also requesting documents from Seoul-based payments provider Chai Corporation that was founded by Shin and Kwon in mid-2019. The documents are sought in order to gain further understanding of Kwon’s role at Chai, how it used the Terra blockchain, disclosures about its relationship with Terraform, as well as why it separated from Terraform.

Previous Denial of Allegations by Terriform & Do Kwon

Terraform Labs and Do Kwon did not oppose the SEC’s motion – they even included their own questions and document requests. They have previously denied all allegations made against them by the SEC.

SEC Lawsuit Against Terriform & Do Kwan

In February this year, the SEC sued both Terriform & Do Kwan alleging their cryptocurrencies were fraudulent. It also alleged that they falsely touted that ChaI used the Terrra blockchain technology to process & settle transactions – something both parties have denied accusations against them of doing so before.

Final Summary

In summary, The United States Security Exchange Commission has asked for permission from South Korean authorities in order to question Daniel Shin on his co-founders’ involvement with Terrraform Labs & ChaI corporation – two companies he founded alongside Do Kwam – as part of an ongoing investigation into alleged fraudulence relating to cryptocurrencies developed by them both.