Terra co-founder Daniel Shin appears in court for arrest warrant review

ChainCatcher news, Terraform Labs Pte. Ltd. co-founder Daniel Shin and seven other Terra partners attended a court hearing in South Korea. It is reported that South Korean prosecutors have accused Shin Dong-hyuk and others of violating the Capital Markets Act and the Electronic Financial Transactions Act, allegedly committing fraud.

According to prosecutors, Shin Dong-hyuk is suspected of illegally profiting over 140 billion won (approximately 107 million USD) through the LUNA cryptocurrency, promoting the Terra stablecoin as a payment method despite multiple warnings from regulators, and misusing Chai company users' private information to promote Terra-LUNA. Shin Dong-hyuk founded and served as CEO of the payment technology company Chai in 2019, but reportedly resigned earlier this year.

Shin denied these allegations, stating that he sold over 70% of his LUNA holdings before the price surge and still held a significant amount of LUNA stock during the bankruptcy of LUNA in May. Shin also claimed that financial authorities had never expressed disapproval of incorporating cryptocurrency into e-commerce payments. (source link)