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Terra’s Co-Founder Reportedly Sold 70% LUNA Before Price Hike

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Earlier this week, it was revealed that South Korean authorities had summoned former Terra executive Shin Hyun-seong, aka Daniel Shin, to an investigation into allegations that he had unfairly profited by selling LUNA [now LUNC] tokens.

Shin was accused of “holding pre-issued LUNA tokens without informing regular investors and then reportedly generating gains of 140 billion Korean won when he sold the tokens at a high point,” as a result. The same was worth approximately $105.52 million.

Terra Co-Founder Denies Illegitimate Profits Of $100M

Shin testified in front of the prosecution on November 17 that he was in possession of a sizable number of LUNA tokens at the time of the accident. Additionally, he denied selling tokens when LUNA was near its highs. A local media report claims,

“Shin is said to have made a statement to the prosecution to the effect that “more than 70% of the disposed Luna was traded before the price soared, and a significant amount was retained even at the time of the collapse.”

In a recent decision, the prosecution determined that the LUNA cryptocurrency qualifies as a financial investment security. As a result, it is “actively investigating” charging Shin with crimes under the Capital Markets Act, namely engaging in fraudulent illegal activities.

The former Terra executive is also charged with harming the business by promoting LUNA and the native stablecoin of the Terra ecosystem while using customer data and funds held by Chai Corporation, the organization where he currently holds the positions of CEO and Founder.

Nevertheless, a Chai representative recently informed Watcher Guru through email that the organisation has been running independently from Terra since Q1 2020. Shin has “cooperated” with the authorities in the continuing Terra probe and will “continue to do so,” according to the issued statement.

Shin has repeatedly said that he severed connections with Do Kwon and Terraform Labs in 2020. He then went on to found Chai Corporation, a provider of payment technology, where he is presently CEO and founder.

Conflicts Over Terra Token Treatment Due To Lack Of Regulations

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The collapse of Terra happened months ago. However, the aftereffect is still present in the crypto-hallways. verse’s The South Korean authorities are currently making every attempt to apprehend Do Kwon, the project’s originator.

Authorities in South Korea are having difficulty compiling a compelling case against the token’s founder Do Kwon. According to a Bloomberg story, disagreements about how to manage Terra tokens are emerging as a result of the lack of laws.

The prosecutor’s office recently asked that a Terraform Labs ecosystem participant be jailed. The court, however, turned down their motion. Despite what the prosecutors asserted, the judge concluded that it is still unclear if the defendant truly violated the South Korean Capital Markets Act.

The prosecution seems to mention the difficulties of the case while implying that it is working hard to prove the case. The authorities insist that further research is ongoing despite the lack of specific restrictions.

Terra Chief’s Whereabouts Still Unknown?

Do Kwon, the chief of Terra, is charged with breaking the Capital Markets Act, while he insists that he did nothing illegal. Kwon is the subject of an Interpol and local South Korean authorities’ arrest warrant. Kwon’s whereabouts are still a mystery.

Kwon, who continues to maintain his innocence, has received a red alert from Interpol. Furthermore, Kwon asserted that the red notice is not an arrest warrant in a recent interview with Laura Shin. When asked where he lived, Kwon also declined to give his address. Rumors suggest that he might be in Dubai, though.

Additional charges against Kwon have not yet been made public by the prosecution. The Terra disaster resulted in losses for a total of 280,000 persons, who claimed compensation. In a lawsuit brought by the lawyer for the victims, Kwon was charged with fraud and illegal fundraising.

On the other hand, today’s crypto markets experienced a small reprieve, and the Terra tokens also experienced a rise. At the time of writing, Luna Classic (LUNC) was priced at $0.00024929 with a daily hike of 8.0%. However, LUNA was priced at $2.47 with a rise of 4.2% over the last 24 hours.

Do Kwon Apologizes To Terra Investors In A Rare Interview

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Do Kwon, the founder of Terra, made a long-awaited appearance in an exclusive interview on October 18 with renowned author and crypto journalist Laura Shin.

Since the Terra Blowout in May this year, Shin, host of the Unchained podcasts, has posed some challenging questions to the evasive founder.

The stablecoin UST and crypto asset LUNA of the Terra Ecosystem collapsed in a matter of days, wiping out the savings of countless people on May 12.

Do Kwon was first questioned about the Red Notice that Interpol had issued calling for his arrest. In response, Kwon said he was waiting for confirmation and refuted having obtained a copy of the arrest warrant.

He expressed his dissatisfaction with the Financial Services Commission of South Korea, for “creating new regulations through criminal enforcement proceedings.”

Calling the charges “illegitimate and politically motivated,” Do Kwon said he is complying with all the document requests made by the South Korean prosecutors.

He then mentioned how he had to deal with one of the worst effects of the collapse: investors losing billions of dollars across the globe. On one occasion, Shin asked Kwon how he felt about the suicide of an investor who lost his life savings, Kwon looked upset and expressed remorse.

I own up to the responsibility fully. It’s not easy — the hardest thing about the current situation is having to contend with so much astronomical loss. It’s quite hard to put into words, but the scale of the financial and emotional and economic damage that happened here is not easy to live.

The terra founder brushed aside reports of cashing out just before the event, calling them “too much misinformation”.

When Shin confronted him with on-chain evidence of 65 million worth of BTC being deposited on KuCoin and OKEx, Kwon retorted that transferring Bitcoin does not always imply selling on spot exchanges and that his auditing firm would soon come out with a report on the same.

Do Kwon Comes Clean On His “Cocky Attitude”

Do Kwon was also accused of having a “cocky attitude” which became notorious during his time on social media. He said he got “carried away with crypto Twitter” and “looking back now it seemed cringe”. But refuse to delete his controversial tweets or posts.

He further appealed to developers to learn from their errors while continuing to work on developing decentralized money that is “more robust, more transparent, and resistant to failure” in addition to being censorship-resistant.

Terra’s Do Kwon at the Risk of Losing His Passport

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Do Kwon and Terra have been the most talked-about subjects in the cryptocurrency sector since May. The sad failure of the billion-dollar company was one of the main incidents in the crypto industry.

Investors lost millions of dollars due to this catastrophic fall. On the market as a whole, the same had a variety of consequences.

It was recently revealed that the South Korean government had obtained a warrant for Do Kwon, suggesting their intention to put the Terra developer in prison.

There were rumors that Do Kwon was attempting to elude the authorities. He addressed these claims on Twitter and reaffirmed that he and his staff are completely compliant with the authorities. In one of the recent reports by Bloomberg, Do Kwon is likely to lose his passport.

South Korea to snatch Do Kwon’s passport

Do Kwon, the founder of Terraform Labs Pte, may soon lose his passport, increasing pressure on him to return to South Korea and face charges related to a $60 billion cryptocurrency crisis.

The passport will be withdrawn in around 14 days if the 31-year-old does not return it, claims a government notification published on Wednesday. Kwon is the subject of an Interpol red alert, and his whereabouts are unknown.

The TerraUSD stablecoin, which was created by Kwon, was intended to have a fixed $1 value in a convoluted relationship with sister currency Luna. The duo collapsed in May, aggravating a $2 trillion cryptocurrency crash, driving a number of digital asset corporations into insolvency, and alarming authorities across the world.

He and five other people are charged with breaking the capital markets legislation in South Korea. The allegations were disputed by Terraform Labs, who said that the matter had become “very political.”

Prosecutors in Seoul have reportedly frozen an additional 56.2 billion won ($40 million) in assets they say belong to Kwon, raising the total to roughly 95 billion won, according to the Chosun Ilbo newspaper.

“I don’t know whose funds they’ve frozen, but good for them, hope they use it for good,” Kwon said on Twitter. The year has proven to be extremely difficult for Do Kwon with the fall of his empire and the issues that followed.

Terra’s Do Kwon Assures That He Is Not Making Any Efforts To Hide

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Since May, Do Kwon and Terra have been the crypto industry’s most popular topics. One of the major events in the cryptocurrency world was the tragic collapse of the billion-dollar business.

Millions were lost by investors during a difficult period. The same has a variety of effects on the market as a whole.

Recently, it was reported that South Korean authorities had secured a warrant for Do Kwon, indicating their plan to imprison the creator of Terra.

Rumors were out that Do Kwon was trying to run from the officials. He took to Twitter to address these rumors and assured that he and his team are fully compliant with the officials.

Do Kwon says he ain’t trying to hide

Do Kwon, a co-founder of Terraform Labs and the subject of South Korean allegations related to a $60 billion Bitcoin wipeout, refuted reports that he was hiding after Interpol issued a red alert for his arrest.

On Monday, Kwon tweeted that he was “making zero effort to hide,” adding that he “goes on walks and malls.” Interpol has asked law enforcement agencies worldwide to find and detain the missing 31-year-old cryptocurrency entrepreneur, according to prosecutors in Seoul.

Kwon and five other people have been charged with offenses, including breaking the legislation governing financial markets.

Kwon earlier this year relocated from South Korea to Singapore, where his now-defunct Terraform Labs enterprise had a presence. However, it is unknown where he is now after the city-state announced on September 17 that he had left. The search for him was thereafter intensified by the prosecution.

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Terra’s Do Kwon Assures That He Is Not Making Any Efforts To Hide 2

Kwon was active on social media while potentially facing arrest and punishment in South Korea. At the time of publishing, he listed Singapore as his location on Twitter, but a Reuters article on September 17 indicated he may no longer be there.

The co-founder of Terra is from South Korea. Although there are certain exceptions, dual citizenship is typically not accepted in South Korea. It is unknown if Kwon has passports from multiple nations.

The algorithmic stablecoin TerraUSD and its sibling cryptocurrency Luna was created by Terraform Labs. In May, both currencies crashed, causing significant losses in the cryptocurrency markets and escalating governmental monitoring of digital assets.

Is Terra’s Do Kwon Evading Investigation? Prosecutors Say So

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Terra’s downfall is still haunting Do Kwon. The South Korean authorities are stating that Do Kwon is trying to evade a possible investigation.

As UST lost its $1 peg on May 10, Terra’s currency and its algorithmic stablecoin Terra USD experienced a sharp decline. The mechanism was designed to maintain its peg to the US dollar automatically. The UST lost value as a result of its failure, and a record number of LUNA tokens were generated.

The decline was severe, with LUNA’s value falling by 95% in a couple of days. The fall witnessed millions losing their life savings as billions was wiped out of the crypto market.

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Is Terra’s Do Kwon Evading Investigation? Prosecutors Say So 4

Is Terra’s Do Kwon on the run?

Kwon had relocated from South Korea to Singapore, the basis of his now-defunct Terraform Labs enterprise, although the city-state claims he has left.

Even though Seoul prosecutors are seeking Kwon’s arrest over claims including breaking capital-markets law, his location is unknown, and he insists that he is not on the run.

Since he left for Singapore, there has been “circumstantial proof of escape,” according to the prosecutors’ office, which is why an arrest order was first issued. Regarding whether the office is aware of Kwon’s location or intends to inform Interpol, it declined to comment.

Despite not publicly disclosing his location, Kwon tweeted days back that he doesn’t “have anything to hide” and is cooperating fully with authorities.

However, according to prosecutors quoted by the Yonhap News Agency, Kwon is not participating in investigations and has informed investigators via an attorney that he has no plans to appear up for interrogation. In addition to this, South Korean authorities urged Interpol to issue a “red notice” against Kwon.

Kwon, along with five others, is facing arrest in South Korea in connection with the Terra affair. Officials might revoke his passport, requiring him to return to Seoul within 14 days after receiving the notification of suspension.

After a string of failures, notably Terra, the Three Arrows Capital hedge fund, and cryptocurrency lender Celsius, crypto firms also realize the necessity for much tighter risk management.

The regulators are also strengthening the measures to ensure that an incident similar to that of Terra will never happen again.

Terra’s Do Kwon: Crypto Community “Has No Business” Knowing His Location

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Terra’s founder Do Kwon took to Twitter to address some of the issues after reports began to circulate that he was on the run evading arrest from authorities. He then criticized the cryptocurrency industry, claiming that they have “no business” knowing where he is.

I am not “on the run” or anything similar – for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide.

Reuters recently reported that the beleaguered founder of the Terra blockchain was no longer in Singapore.

Denying that he fled, the co-founder stated that his team is in the process of defending itself in multiple jurisdictions. “We have held ourselves to an extremely high bar of integrity, and look forward to clarifying the truth over the next few months.”

A South Korean court issued an arrest order for Kwon and a few other people earlier this week.

It is worth noting that South Korea doesn’t hold an extradition treaty with Singapore and, according to Bloomberg, Singapore police are willing to assist their South Korean counterparts.

The speculative rally for Terra tokens was temporarily halted by the news. According to allegations, the co-founder of the Terra project, which collapsed back in May, broke capital market regulations.

Do Kwon, the co-founder, and CEO of Terraform Labs is accused by South Korean prosecutors of defrauding investors by issuing LUNA and USTC without warning them of the risk that the price of both could fall at the same time.

Terra Troubled Founder May Lose His Passport

A few days ago, local media claimed that Kwon’s passport cancellation process had been initiated by South Korean officials. The founder of Terra would thereafter be considered an “illegal alien.”

Kwon maintains his defiance despite rising legal issues.

The founder also faced a sea of wrath over Terra‘s blowout with some asking for his immediate arrest after the fiasco. Even international hacker group Anonymous vowed to “make sure” Do Kwon is “brought to justice as soon as feasible,” back in June.

The self-proclaimed hacktivist released a video that showed a list of Kwon’s alleged wrongdoings. These include his purported $80 million monthly withdrawals from UST and LUNA before the crash and his role in the demise of the stablecoin Basis Cash, which the terra founder is alleged to have created in late 2020 under the alias “Rick Sanchez.”

Terra: The period of resurrection with LUNA’s surge

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Without a question, Terra was at the epicentre of the 2022 crypto market collapse. The project was one of the most prosperous before to the catastrophe, reaching a record high of $119.18 in April. But the soaring climb paved the ground for a legendary fall. The ensuing death spiral sent investors and users into a frenzy. Many people’s lives were completely destroyed, losing all they had saved up for. Since then, the team has created a new Terra Luna token (LUNA) and renamed the existing one Terra Luna Classic (LUNC).

After dramatic collapse earlier this year, the Terra blockchain’s cryptocurrency LUNA was regenerated. On Friday, the price of LUNA tripled, trading close to its all-time high achieved in early June when the token was issued.

According to data from cryptocurrency price tracker CoinGecko, the token’s price surged from less than $2 to roughly $7. At the time of publication, LUNA was trading at about $6, up more than 212% over the previous 24 hours on significantly greater trading activity.

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The native coin of the second iteration of the Terra blockchain, which was revived following the token’s collapse in May, which resulted in the loss of $60 billion in value, is called LUNA. Investigations of fraud against Terraform Labs, the company that developed the blockchain, and its founder Do Kwon followed the implosion. The Luna Classic (LUNC) currency and its stablecoin USTC are hosted on the old blockchain, now known as its Classic version.

Terra’s LUNC surprising surge

Risky investments like cryptocurrencies seem to be broadly rising on Friday in a relief rally as several economic indicators point to a slowing global economy and traders consider the possibility that the Federal Reserve may scale back rate hikes earlier than anticipated or even cut interest rates next year.

Traders became enthusiastic about a new burn program that would reduce the token’s inflated supply, which has caused LUNC to rise as well. Since then, the surge has slightly stagnated, as the coin has dropped 17% in the last day.

Crypto market observers are perplexed by LUNA’s erratic price movement because there hasn’t been any network-specific news or development that would spark excitement among retail traders.

Data from the social asset analytics platform for digital assets LunarCrush indicates a recent surge in social media mentions and engagements is indicative of a retail speculative frenzy.

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The new blockchain for the currency has so far had trouble drawing investors into its ecosystem. According to DeFi data tracker DeFiLlama, the network’s total value locked (TVL), a key metric in decentralised finance (DeFi) that gauges how much value a protocol can amass from investors, stood at a pitiful $51 million at press time. In contrast, the “old” Terra Classic blockchain’s TVL reached more than $20 billion in May before its collapse.

Following the Fall of LUNA, Singapore Watchdog To Lay Down Stablecoin Regulation

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Following the fall of Terra, LUNA, and the entire Do Kwon ecosystem, countries are pushing regulations on crypto and stablecoins.

The main financial watchdog for a city-state, the Monetary Authority of Singapore (MAS), evaluates the benefits of a regulatory framework for stablecoins.

The KYC concerns that are the focus of current regulations do not take into account the unique dangers that stablecoins are subject to.

Regulatory head of Singapore illustrated the high risks that followed LUNA’s fall

On Monday, the MAS official homepage posted a written statement from Tharman Shanmugaratnam, the regulator’s chief, in response to a query from a Singaporean lawmaker.

The inquiry asked whether there was information on how exposed Singaporeans were to the recent decline in the value of the TerraUSD Classic (USTC) stablecoin and the Luna Classic (LUNC) token and if the MAS was actively thinking about ways to address future crises of this nature.

Shanmugaratnam recognized that the Terra collapse serves as an example of the severe dangers associated with investing in cryptocurrencies, but he emphasized that the unrest has not adversely impacted the economy or the mainline financial system.

The majority of the official response described MAS’s existing plans for stablecoins.

The current framework, in which stablecoins, along with other cryptocurrencies, are being deemed digital payment tokens (DPTs), doesn’t address the unique hazards, according to him, thus MAS is actively examining its approach to the regulation of stablecoins.

As a result, MAS “is evaluating the advantages of a regulatory system” particular to the features of stablecoins.

It will concentrate on issues including controlling reserve requirements and peg stability. As stated in the answer, MAS plans to consult the public in the following months regarding the guidelines.

The ties between LUNA’s TerraForm Labs, Three Arrows Capital (a cryptocurrency hedge fund currently facing bankruptcy procedures), and Singaporean crypto regulation were officially denied on July 19 by Ravi Menon, the managing director of MAS.

Menon also stressed the need for the regulatory attention to be shifted away from KYC/AML and onto the more complex threats presented by cryptocurrencies in his address.

Terra Is Facing Another Class Action Lawsuit

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A new class action lawsuit has been brought on TerraForm Labs, its founder Do Kwon, its director of research Nicholas Platias, and other companies.

The class action complaint has been filed by Bragar Eagel & Squire PC accusing the defendants of breaking the California Common Law, the Exchange Act, the Securities Act, and the Racketeer Influenced and Corrupt Organizations Act (RICO).

Terra faces three class action lawsuits

In a news statement on July 25, Bragar Eagel & Squire PC disclosed that it has filed a class action lawsuit against TerraForm Labs, its founder Do Kwon, and Nicholas Platias.

In addition, affiliates like GSR/GSR Markets, Three Arrows Capital, Republic Capital, Republic Maximal, Tribe Capital, DFinance Capital, and DFinance Technologies (3AC).

All investors, including people and businesses, who bought or obtained LUNA tokens between May 20, 2021, and May 25, 2022, are included in the class action lawsuit.

In the case, Terra Labs and other defendants are charged with breaking Exchange Act rules. Investors claim that the company misled them, causing them to purchase LUNA Tokens at inflated rates. The defendants reportedly carried out a strategy and set of actions to entice investors.

The defendants are charged with approving false claims that were deceptive and of which they knew or ought to have known. The complaint also asserts that by failing to register their token, Terraform Labs and other defendants violated Securities Act restrictions.

The investigating teams from South Korea and the United States had already agreed to exchange information on their investigations into Do Kwon and the LUNA disaster.

In reality, South Korea’s investigative team searched 15 cryptocurrency businesses and exchanges, as well as co-founder of TerraForm Labs Daniel Shin’s residence and offices, last week, stepping up inquiries into claims that Do Kwon and TerraForm Labs committed fraud.

Terra’s USTC and LUNC values have fallen as a result of the new round of investigations; previously, they had been steadily rising as a result of community-led token burning.