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Over US$100M in LUNA gains, South Korea summons former Terra executive Daniel Shin

The co-founder of Terraform Labs Pte. Ltd., Shin Hyun-seung, also known as Daniel Shin, has been called by South Korean prosecutors to an investigation this week as a suspect for allegedly making unjustified gains with the cryptocurrency LUNA, which is now known as the Luna Classic (LUNC).

Without informing regular investors, Shin is charged with hoarding pre-issued Luna tokens and then profiting by selling them at a profit of over 140 billion Korean won (about US$106 million).

Prosecutors in South Korea believe that this transaction violates local capital markets law and is dishonest since they have decided to classify the Luna cryptocurrency as a financial investment security.

When Do Kwon went on to the payment technology startup Chai Corporation, where Shin is currently serving as founder and CEO, Shin claims to have severed relations with Terraform Labs and its CEO in 2020. (CEO).

The client data and cash of Chai Corporation were reportedly used to advertise Terra’s stablecoin and Luna cryptocurrency, but the prosecution are also charging Shin with negligence.

Shin will also be questioned by the prosecutors about whether he was aware of the alleged insider trading and price manipulation carried out by Terraform Labs to support the price of the Luna cryptocurrency.

The collapse of Terra-LUNA in May of this year, which resulted in losses for hundreds of thousands of investors worldwide, is being looked into by South Korean authorities. The location of the CEO of Terra is still a mystery, despite the fact that they have issued an arrest warrant for Do Kwon and are working with Interpol to find him.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.