More than $100 million worth of assets of Terra co-founder Daniel Shin were recently seized. Operation November 14th South Korean prosecutors have asked the accused co-founder to appear in court as part of an investigation into the disappearance of the payment platform. The Southern Court in Seoul granted the request of local prosecutors. The money was allegedly obtained illegally via the imploded LUNA token.
The Death of Earth
Lately it already has news on the fall of the cryptocurrency exchange FTP extension the spotlight stolen from other fallen ecosystems. Meanwhile, South Korean authorities continue to isolate victims of the first crypto crash of the year: Terraform Labs. Earth is one blockchain payment protocol and platform used for the algorithm stable coins. It is most famous for its stablecoin Terra and its associated reserve asset LUNA cryptocurrency.
moon inside stable coins TerraUSD (UST) crashed in May, affecting thousands of cryptocurrency investors. This is one of the major events that contributed to the cryptocurrency crash in 2022. Nearly six months after the official shutdown of the Terra (LUNA) blockchain, South Korean authorities froze an estimated $104.4 million (140 billion won) from the co-founder on suspicion of unfair profiteering.
Multiple allegations against the co-founder
According to the local news agency YTN, Shin earned the money through illegal activities with the LUNA token.
Hwang Suk-jin, a cybersecurity professor at Seoul’s Dongguk University, spoke out on the matter. He said Shin is accused of generating illegal profits. This was using LUNA which he obtained without “proper disclosure at the token issuance”.
“[Bijvoorbeeld] Self [beleggers] one thousand tokens were thought to have been issued and in fact 10,000 have been issued, investors inevitably suffer losses”.
Shin is also accused of default. More specifically, the co-founder of Terraform Labs is accused of misusing the personal information of customers of Chai Corporation, a payment technology company he founded, to promote tokens issued by Terraform Labs.
