South Korea’s investigation team has concluded a search and seizure of crypto companies in relation to the Terra-LUNA crash and fraud allegations against Do Kwon and Daniel Shin. Prosecutors will analyze collected transaction records and other evidence materials to order subpoenas.
Meanwhile, the crypto-friendly South Korean financial regulators presented work reports on the “Digital Asset Basic Act” to draft law in October. Moreover, the government decides to penalize those involved in money laundering and illegal transactions before passing the law.
South Korea Plans Strict Penalties Before Digital Asset Reform
South Korea is strengthening crypto regulations to prevent debacles such as the Terra-LUNA crash, while also investigating the perpetrators responsible for the crash.
Seoul Southern District Prosecutor’s Office of the Financial Securities Crimes Joint Investigation Team has concluded its week-long search and seizure, reported a local news agency on July 28. Prosecutors collected evidence related to TerraForm Labs, Do Kwon, and Daniel Shin by conducting raids in 15 companies, including 7 crypto exchanges, as well as the home of Daniel Shin.
Prosecutors will now analyze transaction records and forensic data to summon Do Kwon, Daniel Shin, and affiliates on fraud, money laundering, and tax evasion allegations.