Terra Co-Founder Among Ten Formally Charged in South Korea Following Months-Long Investigation – $185 Million Worth of Assets Frozen
South Korean prosecutors have indicted Terraform Labs co-founder Daniel Shin and nine others on several charges, including violations of capital markets law related to the failed Terra/Luna project.
Shin founded the company behind LUNA and UST digital currencies with the now-infamous Do Kwon.
It was announced on Tuesday that the Seoul Southern District Prosecutors’ Office charged 10 people, including Shin, claiming that these individuals, through their involvement with Terraform Labs, gained at least ₩462.9 billion won ($346.2 million) in profits by selling their coins before the crash, causing "astronomical damage" to investors.
The prosecutors called Terra a "fictitious" project and stated that ₩246.8 billion ($184.6 million) in assets from the ten indicted individuals has been frozen.
Some of the funds are held in Switzerland-based digital asset bank Sygnum Bank AG, while more funds may be held in other places - with the prosecutors working on finding them.
Sygnum Bank complied with all relevant court orders related to Terraform Labs and is unaware of being a target of any regulatory actions, The Wall Street Journal reported, citing a person familiar with the matter.
Shin was indicted for illegal trading: more precisely, on charges that include fraud and violations of capital-markets laws and regulations related to electronic financial transactions and fundraising.
Seven other individuals said to be directly involved with Terra - including management, marketing, and systems development - are facing the same charges as Shin.
Two more individuals, who were not directly involved with Terra, have been charged with breach of trust and illegally accepting bribes, as they allegedly provided favors to the company in exchange for
Read more on cryptonews.com
