Trial of the Terra Executive: Seizure of Assets
The seizure is intended to prevent the Terra executive from disposing of the assets before his trial this week.
It is unfortunate that the Terra ecosystem collapsed in May, resulting in the seizure of assets belonging to Shin Hyun-Seong (Daniel Shin). However, it is heartening to see that prosecutors are taking action against those responsible for the collapse. It is hoped that this will help to deter others from engaging in similar activities in the future.
The court's decision to freeze Shin's profits is a victory for retail investors who were duped by his actions. This decision will send a strong message to other would-be fraudsters that such behavior will not be tolerated. It is a step in the right direction to protecting investors and ensuring that markets are fair and transparent.
Shin to Cooperate With Prosecutors
The request to seize Shin's assets is part of an ongoing investigation into whether the co-founder of Terraform Labs generated unfair profits from Terra-related digital assets, including the collapsed LUNA and UST tokens.
Shin's lawyer reportedly dismissed the claims against his client, noting that the allegations are false. Authorities believe Shin violated local capital laws by secretly selling the tokens before the project collapsed, but it remains to be seen if he will be held accountable.
“The report to the effect that CEO Shin Hyun-seong realized profits by disposing of Luna at the peak, or that he made profits in other fraudulent ways, is different from the truth,” the attorney said.
I believe that the court's verdict against the Terra executive is fair and just. I think that it is important to prevent the executive from disposing of assets before his trial, as this could potentially interfere with the justice process. I believe that the prosecutor's claim that he had a role in Terra's crash is credible, and I think that the customer transaction data should be carefully examined to determine whether or not it was illegally sent to Terraform Labs.
It is unclear if Shin had investments in Terraform after his exit from the company in late 2020. However, his LinkedIn profile shows that he left Terraform Labs to establish Chai.
Do Kwon Promises to Unmask the Location
Do Kwon, the CEO and founder of Terraform Labs, has been on the run since May, with a red notice issued against him and his passport reportedly invalidated. Hyun-Seong is cooperating with prosecutors, but it is not clear what will happen to Do Kwon.
Kwon, the founder of blockchain development platform Terra, is reportedly in Europe. The developer has promised to unmask his current location at a upcoming conference. Kwon's whereabouts have been unknown since he disappeared earlier this year.
As the legal status of cryptocurrencies remains murky in South Korea, prosecutors are having a tough time building a case against Terra founder Kwon Sun-woo. Despite an arrest warrant being issued for Kwon, authorities have struggled to make any significant headway in their investigation due to the lack of clarity around crypto regulations in the country.
It is disappointing to see prosecutors going after Terraform Labs boss Kwon for allegedly violating capital market laws. Terraform Labs has accused the authorities of prosecutorial overreach, and it is possible that the allegations against Kwon are politically motivated. We hope that the courts will carefully consider the evidence and give Kwon a fair hearing.
The post South Korea Confiscates Over $100 Million from Terra’s Co-founder: Report appeared first on CryptoPotato. This is a huge blow to the Terra project, which is aiming to build a blockchain-based payment network.
