Over $100 million in LUNA gains, South Korea summons former Terra executive Daniel Shin

Shin Hyun-Seung, the cofounder of Terraform Labs Pte. Ltd. and also known as Daniel Shin, has been summoned by South Korean prosecutors to attend an investigation this week as a suspect for allegedly earning ill-gotten profits with LUNA, now renamed the Luna Classic (LUNC) cryptocurrency.

South Korea summons ex-Terra exec Daniel Shin over $100M in LUNA gains

Choi Sung-kook, the Seoul Southern District Prosecutors’ Office prosecutor, confirmed.  Shin is accused of storing Luna tokens pre-issued without notifying regular investors and then allegedly earning profits of over 140 billion Korean won (about $106 million) when he sold the tokens at a high point.

South Korean prosecutors consider this transaction fraudulent and a violation of the local capital markets law, as they have decided to view Luna cryptocurrency as financial investment security.
Shin claims to have cut ties with Terraform Labs and chief executive officer (CEO) Do Kwon in 2020, when he moved on to payment technology company Chai Corporation, where Shin is currently serving as founder and CEO.

However, the prosecutors are also accusing Shin of breach of duty, as the customer information and funds of Chai Corporation were allegedly used to promote Terra’s stablecoin and Luna cryptocurrency.
The prosecutors will also question Shin on whether he knew of the insider trading and price manipulation allegedly conducted by Terraform Labs to prop up the price of Luna cryptocurrency.

South Korean authorities have been investigating the collapse of Terra-LUNA back in May this year, which caused losses to hundreds of thousands of investors worldwide. While they have issued an arrest warrant and have Interpol’s help in tracking Do Kwon, the whereabouts of the Terra CEO are still unknown.

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