• The US Securities and Exchange Commission (SEC) has been granted permission to work with international authorities to question one of the co-founders of Terraform Labs, Daniel Shin.
• The SEC alleges that Terraform Labs and Do Kwon misled investors by telling them that Chai used the Terra blockchain to accrue value to its native token, LUNA.
• Kwon is facing multiple charges for the $40 billion crash of the Terra ecosystem and could be sentenced to more than four decades in prison in South Korea.

SEC Granted Permission To Pursue Investigation

A judge has granted the U.S. Securities and Exchange Commission (SEC) permission to work with international authorities in order to pursue an investigation into one of the founders of Terraform Labs, Daniel Shin.

Accusations Against Do Kwon & Terraform Labs

The SEC alleges that both Do Kwon and his company, Terraform Labs, repeatedly misled investors by telling them that Chai was being used on the Terra blockchain in order to accrue value for its native token LUNA. This ultimately led to a $40 billion crash of the entire system, leading to multiple charges against Mr. Kwon which could result in him being sentenced over forty years in prison if found guilty.

Assets Frozen By Swiss Authorities

In February this year, it was alleged that Mr. Kwon had transferred 10,000 Bitcoin worth $250 million from both Terraform Labs and Luna Foundation Guard (LFG) into a Swiss bank account as LUNA and its algorithmic stablecoin were imploding. In response, authorities in Switzerland froze assets worth approximately $26 million after receiving requests from both New York Attorney’s Office as well as the SEC itself.

Sentenced To Four Months In Prison

Do Kwon was also sentenced last June to four months’ imprisonment in Montenegro after using a forged Costa Rican passport – although these charges are likely just part of what he faces given all other accusations against him. Both United States and Korean authorities want him extradited back home for further investigation related to this case’s events which have caused massive financial losses worldwide due to their actions with regards towards Luna cryptocurrency investments from many individuals or organizations alike .

Daniel Shin Charged With Fraud By South Korean Authorities

It was recently revealed that Daniel Shin himself has been charged with fraud by South Korean authorities back in April this year – indicating that investigations are still ongoing regarding all involved parties within this case globally .

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