Co-founder of Terra Daniel Shin disputes a $100 million LUNA cashout

Daniel Shin, the cofounder of Terraform Labs Pte. Ltd., also known as Shin Hyun-Seung, told South Korean prosecutors during an investigation on Thursday that he did not sell LUNA, now LUNC cryptocurrency, at a high point, local media outlet Global Economy Newspaper reported.

Daniel Shin, the cofounder of Terraform Labs Pte. Ltd., also known as Shin Hyun-Seung

Terra cofounder Daniel Shin denies $100M LUNA cashout

Shin reportedly said he sold more than 70% of his LUNA tokens before its price surged and held a relatively significant amount of LUNA during the collapse of Terra stablecoin and sister LUNA in May. South Korean prosecutors stated Monday they summoned the Shin based on accusations that the Terra co-founder earned ill-gotten profits of $104 million by selling off LUNA he stored pre-issuance, without proper disclosure, at a high point.

On Thursday, South Korea’s Seoul Southern District Court approved prosecutors’ request to freeze some $104 million in assets allegedly belonging to Shin. Shin is also accused of using the personal information of customers at Chai Corporation, a South Korea-based payments tech company he established in 2019, to promote Terraform Labs without consent.

Meanwhile, Shin and Chai Corporation has repeatedly denied any claims of involvement in the Terra-LUNA collapse, saying they cut ties with the project in 2020. According to local media reports, Shin returned to the Seoul Southern District Prosecutors’ Office on Friday following Thursday’s questioning.

The South Korean prosecutors’ office investigating Shin has not immediately responded to Forkast’s request for further details, while a Chai spokesperson declined to comment or confirm the reports. It remains undisclosed how much Shin lost during the Terra-LUNA collapse.

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