Reportedly, South Korean Law Enforcement Executed a Search Warrant at the Office of Terraform Labs Co-Founder Chai.
Two people, Do Kwon and Daniel Shin, were responsible for the creation of the cryptocurrency project known as the Terra blockchain, which failed in May of last year (Shin Hyun-seung). In a manner analogous to the FTX debacle, Shin was more of a quiet partner like Gary Wang, who was one of the co-founders of FTX.

According to a report by Forkast, the office of the prosecutor for the Seoul Southern District has conducted a search warrant at Shin's company, Chai Corporation. Chai is a payments company that was founded by Shin, who was also one of the co-founders of TFL. It is believed that Chai had a strong connection to TFL's activities at the time.

For example, the whistleblower Fatman posted a thread on May 28, 2022, alleging that Kwon was involved in a premine project that allegedly worked in conjunction with Shin's Chai. According to the information provided by Fatman, TFL premined a token known as SDT, and this token was allegedly used to cash out via Chai by utilizing the Korean won (KRW) token from the Terra blockchain.

After looking into the connection between Chai and the KRW token, also known as the KRT, other reports became interested in the collaboration between Chai and TFL. According to the information provided by Forkast, local reports assert that Chai's KRW token (KRT) functionality was disabled in March of 2022.

Forkast mentioned that on Monday, South Korean prosecutors announced that Shin had been called in as a suspect in connection with the "breach of duty and violations of the capital markets law for unfair trade practices."

In addition, authorities in South Korea are said to have conducted a search warrant at Shin's residence in the month of July. Shin has responded to the allegations regarding the premine by denying them and stating that Chai Corporation has been operating independently from TFL as of the first quarter of 2020.

The alleged raid on Chai Corporation comes on the heels of local KBS reports which state that Kwon has been accused of manipulating the price of LUNA by South Korean investigators. According to the additional information provided by the KBS news reports, Kwon "is now an illegal immigrant" and is possibly hiding out in Europe.