Terra Co-Founder Daniel Shin And Others Tried For LUNA-UST’s Accident

Key Points:

  • Terraform Labs co-founder Daniel Shin and seven people involved in the LUNA-UST crypto crash have been handed over to trial.
  • This is the first time the prosecutor’s office has reached the first conclusion on a related case after a year of investigation into the domestic virtual currency ‘crash’.
  • Luna and Terra were sold and traded through public deception and transaction manipulation as if ‘Project Tera’ had been successfully promoted and approximately 462.9 billion won.
According to Korean media, south Korean prosecutors have handed over Daniel Shin, co-founder of Terraform Labs and former CEO of Chai Corporation, and other personnel related to the case to trial.
Terra Co-Founder Daniel Shin And Others Tried For LUNA-UST's Accident

This is the first time prosecutors have reached a preliminary conclusion in a related case after a year of investigating the Terra-Luna crash.

On the same day, the Joint Securities and Financial Crimes Investigation Team of the Seoul Southern District Prosecutor’s Office prosecuted Daniel Shin and 7 other managers and ordinary employees related to the Terra project on suspicion of fraudulent transactions fraudulent and inappropriate under the Capital Markets Act. Prosecutors allege in the indictment that they minted Luna tokens “investment contract securities” between April 2019 and May 2020 but distributed and sold them to investors without filing a stock report.

The charges against Daniel Shin include Violation of Capital Markets Law (inappropriate trading, violation of public offering regulations, unlicensed selling), Violation of Specific Economic Crimes Act (fraud, breach of trust, embezzlement of public funds), Information Act Specific Financial Transaction Violation, Electronic Financial Transactions Act Violation, forged receipts, misconduct and violations commercial trust.

For former CEO Shin and eight people involved in the Terra project, from July 2018 to May last year, the Luna and Terra coins were sold and traded through public deception and manipulation of transactions as if ‘Project Tera’ was successfully promoted, and approximately 462.9 billion won He allegedly obtained a substantial amount of unfair profit and regularly scammed about 376.9 billion won.

Terra Co-Founder Daniel Shin And Others Tried For LUNA-UST's Accident

In addition, Luna Coin is considered an investment contract security, and the allegations of violations of the Capital Markets Act, such as fraudulent trading, public offering regulations and drone operations, are also included.

Former CEO Shin is also accused of investment fraud by deceiving the ‘Bottle Project’ as a business that can reduce costs and discounts through blockchain and illegally profit about 122.1 billion won from the companies. Investors.

Ultimately, the prosecution pointed out that the Luna collapsed just days after the Terra price fix broke, evaporating about 50 trillion won in market capitalization and causing huge losses to investors across the globe.

Meanwhile, in Montenegro on the 23rd of last month, Terraform Labs CEO Kwon Do-hyeong (Do Kwon) and former Chai Corporation CEO Han Chang-joon were charged by local prosecutors with tampering with documents. Official documents regarding forged passports, and they will be tried first in Montenegro. Currently, Kwon is still being held in Montenegro for trial.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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