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.