<\/p>\n
A judge has granted the U.S. Securities and Exchange Commission (SEC) permission to work with international authorities to question one of the co-founders of Terraform Labs.<\/p>\n
Court records indicate<\/a> that District Judge Jed S. Rakoff approved the SEC\u2019s request to ask for help from authorities in South Korea in regard to acquiring testimony from Daniel Shin, who co-founded Terraform Labs with Do Kwon.<\/p>\n The SEC alleges<\/a> that Terraform Labs and Kwon \u201crepeatedly misled and deceived investors\u201d by telling them that Chai used the Terra blockchain to settle transactions that would accrue value to Terra\u2019s native token, LUNA.<\/p>\n In February, the SEC alleged<\/a> that Kwon transferred 10,000 Bitcoin (BTC<\/a>), worth $250,000,000 at the time, from Terraform Labs and the Luna Foundation Guard (LFG) into a Swiss bank account as LUNA<\/a> and its algorithmic stablecoin TerraUSD UST<\/a> were imploding.<\/p>\n Swiss authorities reportedly\u00a0froze<\/a>\u00a0$26 million worth of those assets last month, according to the Korean outlet Digital Asset. The Swiss digital asset bank Sygnum froze the crypto after Swiss authorities received requests from the New York Attorney\u2019s Office and the SEC.<\/p>\n Kwon was\u00a0sentenced<\/a>\u00a0to four months in prison in Montenegro in June for using a forged Costa Rican passport, though those relatively minor charges are likely just the beginning of the outspoken Terra founder\u2019s problems.<\/p>\n Authorities in the United States and South Korea want to extradite<\/a>\u00a0the disgraced crypto executive, who\u2019s facing multiple charges arising from the $40 billion crash of the Terra ecosystem.<\/p>\n Dan Sunghan, the director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service, recently\u00a0told<\/a> Bloomberg that Kwon could serve more than four decades behind bars.<\/p>\n South Korean authorities reportedly charged<\/a> Shin with fraud in April.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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