• 17 July, 2024
News

South Korean Authorities Crack Down on Terra Co-Founder Shin and Co-Defendants

South Korean authorities have indicted Terraform Labs co-founder Daniel Shin and nine other individuals on multiple charges, including violations of capital markets law, according to a recent Bloomberg report. As per the reports, the Seoul Southern District Prosecutors’ Office announced via a local news conference on April 25 that they have frozen $184.7 million in assets belonging to those indicted so far.

Eight people, including Shin, have been indicted for illegal trading, while two others face charges of breach of trust. All the accused are directly involved in various aspects of the Terra project, including marketing, systems development, and management, according to the prosecutors.

The authorities have labeled the Terra project as a “fabrication” from the start, claiming that the algorithm intended to maintain the coin’s stable price was unachievable. The statement alleged that Shin and the others indicted caused “astronomical damage” to global investors.

Before the Terra collapse, those implicated had profited $346 million, and officials have been actively tracing these illicit gains. Prosecutors added that the accused had unlawfully exposed clients’ payment details and embezzled corporate funds during the development of Terra.

Although further information was not given, the South Korean officials said they are collaborating with United States authorities on the matter. Notably, Shin departed the firm in 2020, according to prior statements made by his attorneys, and has apparently not been engaged in its operations since. A judge in December 2022 denied South Korean prosecutors’ request for an arrest warrant for Shin after determining that he was unlikely to tamper with evidence or pose a flight risk.

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