South Korean authorities have frozen some properties belonging to Daniel Shin, who co-founded Terraform Labs alongside Do Kwon, and 9 other individuals with close ties to Terra (LUNA). However, a local court recently ruled that the LUNA token cannot be considered a security, and therefore cannot be regulated as an investment product.
https://cryptoast.fr/feed/
Terra (LUNA) : le co-fondateur Daniel Shin et 9 autres personnes inculpées en Corée du Sud
The authorities are seriously looking into the Terra case
According to information from Bloomberg, Daniel Shin (Shin Hyun-Seung), who co-founded Terraform Labs alongside Do Kwon in 2018been charged with multiple counts with 9 other individuals also linked to Terra (LUNA) in South Korea.
The latter have, among other things, been charged with illegal trade and breach of trust. The South Korean authorities also told them confiscated the equivalent of 246.8 billion wonor approximately $184.7 million.
Although Daniel Shin was closely involved in the evolution of Terra, the latter, however, separated from the project in 2020, i.e. 2 years before its implosion caused by the fall of the LUNA UST. It is for this reason that he could not be arrested, the court having ruled that he was not at risk of fleeing or hiding evidence in view of his decision to leave Terra.
According to the Seoul prosecutors’ office, the project of Daniel Shin and Do Kwon (Kwon Do-Hyung) was doomed from its conception, the algorithmic stablecoin structure relating to the UST being “unsustainable”.
At the same time, Daniel Shin and the 9 other individuals are accused of having caused “astronomical damage” by generating 347 million dollars in profits. Of this amount, 184 million dollars have already been frozen by the authorities.
👉 Discover our selection of the 10 best wallets to protect your cryptocurrencies
Discover ZenGo
$10 Bitcoin bonus from $200 deposit 🔥
More to come
As we said, Daniel Shin is not, for the moment, likely to be imprisoned in view of his situation. He remains free pending trial. and is said to have already started to cooperate with the local authoritiesaccording to his lawyer:
” [Il n’a] nothing to do with the collapse, as he had left the company 2 years before the fallout. He voluntarily returned to South Korea immediately after the collapse and has been faithfully cooperating with the investigation for more than 10 months, hoping to help set the record straight. »
Without giving details, South Korean authorities also said they were working in concert with the United States. Do Kwon, awaiting trial behind bars in Montenegro for possession of false identity documents, should also be then extradited to the United States or South Korea.
The outcome of this case, however, is complicated to predict, a South Korean court having very recently ruled that the LUNA token could not be considered as a security. and therefore that it could not be regulated as a classic investment product. On the U.S. side, Do Kwon’s attorneys denied any allegation of securities fraud before the SEC.
👉 In The News – Cryptocurrency regulation: Coinbase sues the SEC and gives it an ultimatum
Buy crypto on eToro in minutes
Source: Bloomberg
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
682 items
