Terraform Labs co-founder Shin questioned over unfair trading charges

The Korea Times

The Korea Times

Finance

Mon, December 4, 2023 | 05:25

Cryptocurrency

Terraform Labs co-founder Shin questioned over unfair trading charges

Posted : 2022-11-17 14:16

Updated : 2022-11-18 08:12

This undated file photo, provided by Upbit, shows Daniel Shin. Yonhap

Prosecutors on Thursday questioned Daniel Shin, co-founder of Terraform Labs, on charges that he gained illegal trading profits before the massive collapse of the blockchain firm's cryptocurrencies.

Terraform Labs has been under investigation for alleged fraud and tax evasion after investors in its cryptocurrencies ― TerraUSD and its sister coin Luna ― filed complaints against Do Kwon, another co-CEO, in May.

The 37-year-old Shin, currently serving as the head of fintech firm Chai, was accused of capital market law violations for unfairly unloading Luna coins during a market boom and pocketed illegal profits worth 140 billion won ($104.8 million).

Prosecutors suspect the unloaded coins were those pre-issued without notifying regular investors.

Shin was also charged with breach of duty for allegedly using the customer information and funds of Chai to promote Luna.

While there is currently no legal clause on stablecoins and bitcoins under the Capital Markets Act, prosecutors said they view Luna cryptocurrency as a financial investment security.

An Interpol red notice has been issued for Do. (Yonhap)

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