Korean e-commerce exec accused of accepting LUNA for shilling Terra Labs
South Korean prosecutors have requested an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform, after taking billions of won in LUNA (LUNA), now known as LUNA Classic (LUNC), for promoting Terra as a simple payment gateway.
Seoul prosecutors requested an arrest warrant on the former CEO of ecommerce giant Tmon for allegedly receiving bribery from Terra cofounder Daniel Shin in exchange for promoting Terra as a payment method, the Seoul Southern District Prosecutors Office confirmed with me via text.
Media outlet Dong-A Ilbo reported that the head of the financial and securities joint investigation team at the Seoul Southern District Prosecutor's Office requested an arrest warrant for bribery charges for the former Tmon CEO described as "Mr. A" and a person described as "broker B" who worked on lobbying in the financial sector in favor of Terra.
Mr. A allegedly received LUNC tokens from Terra co-founder Shin Hyun-Seong, also known as Daniel Shin, who in return asked him to extensively promote Terra as a simple means of payment. After this, Tmon advertised LUNC and spread the message that the token is a safe asset. According to the investigators, the promotions led to an increase in the token's price by raising investors' expectations.
The former Tmon CEO has allegedly made billions of won after selling the LUNC tokens received in exchange for the promotions. In addition to this, the report also highlighted that despite warnings from financial authorities, Shin has reportedly given money to other companies like Tmon to promote LUNC as a safe payment method.
Related: Legal troubles mount for Terraform Labs as Seoul police investigate
On Nov. 14, prosecutors in South Korea called on Shin to
Read more on cointelegraph.com
