South Korea Freezes Terra Co-Founder’s $104 Million Assets – Bitcoin News
South Korean prosecutors have reportedly obtained a court order freezing approximately $104 million worth of assets owned by Terraform Labs co-founder Daniel Shin. Authorities claim they unfairly profited from selling LUNA at a high price before the cryptocurrency’s crash. Shin has denied the allegations.
South Korean authorities freeze assets of Terraform Labs co-founder
The Seoul Southern District Court has reportedly ordered local prosecutors to freeze approximately 140 billion won ($104 million) in assets belonging to Terraform Labs co-founder Shin Hyun-soon, aka Daniel Shin. It reportedly approved the official’s request on Thursday. A pre-trial freeze order is a precautionary measure to prevent suspects from disposing of criminal proceeds before trial.
The prosecution has accused Terra’s co-founders of selling the issued cryptocurrency LUNA (now luna classic (LUNC)) without proper disclosure to investors, resulting in an “unjustifiable loss” of approximately 140 billion South Korean won. ” accused him of making a profit. However, Singh reportedly told prosecutors on Thursday that he did not sell the cryptocurrency at its top price before the token crash.
Hwang Seok-jin, a professor of information security at Dongguk University and a regular speaker on crypto policy at the South Korean National Assembly, told Forkast:
It’s a premining problem. That’s because we didn’t make proper disclosures when issuing tokens.
For example, if an investor “thinks 1,000 tokens have been issued, but in fact 10,000 tokens have been issued, the investor will inevitably suffer a loss,” he added.
Singh and Chai Corporation, the local payment technology company he founded, are currently under investigation for allegedly using customer information without consent in launching Chai’s Terra payment service. The payment company was reportedly raided by local authorities on Thursday.
South Korean prosecutors have been investigating the LUNA bankruptcy since May and issued an arrest warrant for Kwon Do-Hyung, aka Do Kwon, who co-founded Terraform Labs with Shin. Interpol also issued him a red notice. South Korean authorities announced last month that they had frozen Kwon’s crypto assets. However, Kwon denied that his frozen coins belonged to him.
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South Korea Freezes Terra Co-Founder’s $104 Million Assets – Bitcoin News
Source link South Korea Freezes Terra Co-Founder’s $104 Million Assets – Bitcoin News
