Terra Exec

Ex-Terra Exec sold LUNA for $105.52M: Probe underway

Terra Exec
Source: Zipmex

There have been reports that Terra Exec Shin Hyun-Seung, aka Daniel Shin, the co-founder of Terraform labs, has been summoned by South Korean prosecutors to appear at an investigation this week in connection with his alleged unjust enrichment from the sale of LUNA [now LUNC] tokens.

After being accused of “storing LUNA tokens which had been pre-issued without notifying regular investors and then allegedly earning profits over 140 billion Korean won when he sold the tokens at a high point,” Shin was arrested, according to a prosecutor from the Seoul Southern District Prosecutors’ Office who spoke with the crypto media outlet Forkast.

As of this writing, it was worth $105.52 million.

Prosecutors have characterized this deal as “fraudulent” and a “violation” of the local capital markets law.

Prior to this, South Korean authorities had been looking into whether or not tokens used in the Terra ecosystem displayed the traits of securities. In evaluating LUNA’s securities practices, the Seoul Southern District Prosecutors’ Office looked to precedents in cases from other countries.

In the end, they settled on classifying the token as a financial investment security. In September, a warrant was issued for the arrest of Terra executive Do Kwon. He was wanted for breaking the capital markets law, among other things.

Read More – Terra: South Korea issues Arrest Warrant Against Do Kwon

Breach of duty, insider trading are other tangents

On multiple occasions, Shin has confirmed that he and Do Kwon severed ties in 2020. Afterwards, he went on to found and lead Chai Corporation, a payment technology company.

According to the most recent information available, prosecutors have also charged the ex-Terra executive with “breach of duty,” alleging that he used Chai Corporation’s customers’ personal information and money to promote Terra’s stablecoin and Luna cryptocurrency.

Parallel to this, he will be questioned as to whether or not he was aware of the insider trading and price manipulation that Terraform Labs is rumored to have engaged in to artificially inflate the price of LUNA.

As of the time of this writing, one Terra Classic [LUNC] coin was worth $0.0001667, down 9% from the day before.

Source: Watcher.guru

Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.




, ,



Leave a Reply

Your email address will not be published. Required fields are marked *