Legal Battle Continues: Former CEO Shin Hyun-seong Faces Trial for Fraud
- First trial of former CEO of Chai Corporation, Shin Hyun-seong, accused of violating the Capital Markets Act and accused of stealing, will be held on the 10th.
- Shin started selling Luna coins from the launch of the anchor protocol, which raised the price of Luna coins in March 2021, and earned at least 154.1 billion won in profits.
- Former CEO Shin Hyun-seong is accused of acquiring unfair profits of 122.1 billion won from investors by deceiving the Chai Pay.
Shin Hyun-seong, former CEO of Chai Corporation and co-founder of Terraform Labs, is facing his first trial on accusations of violating the Capital Markets Act. His trial is scheduled for June 10th, according to the legal community. Seven accomplices who helped Shin commit crimes and received illegal profits will also be tried.
The Seoul Southern District Prosecutor’s Office’s Financial Securities Crimes Joint Investigation Department indicted Shin and his accomplices without detention in April.
The accusations against Shin Hyun-seong and his accomplices date back to 2018, when they allegedly deceived investors by hiding the fictitiousness of the Terra project and promoting it through transaction manipulation and false publicity. They then disposed of the coin before the Luna coin crash in May 2020, making an unfair profit of 462.9 billion won and stealing 376.9 billion won.
Prosecutors also allege that Shin Hyun-seong started selling Luna coins from the launch of the anchor protocol in March 2021, which raised the price of Luna coins, earning him at least 154.1 billion won in profits until just before the crash. They believe he was the main culprit who led and planned the crash.
Furthermore, Shin is accused of acquiring unfair profits of 122.1 billion won from investors by deceiving them with the promise of a business that can secure discount funds and reduce costs through blockchain.
Originally scheduled for May 26, the first trial was postponed to this day due to controversy over the fairness of the chief judge. The reason for the change is that the chief judge, Mr. A, had interviewed former CEO Shin’s success story while serving as a reporter for the JoongAng Ilbo in 2010. The article dealt with former CEO Shin’s history of starting Ticket Monster in the past.
This case highlights the importance of understanding the risks involved in investing in cryptocurrency and the need for proper regulations to protect investors. As the cryptocurrency market continues to grow, it is essential to be vigilant and informed before investing.
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