The Seoul Southern District Attorney’s Office filed a criminal complaint against one of the co-founders of Terraform Labs today. Daniel Shinand nine unidentified employees of the failed crypto project due to fraud, embezzlement and other crimes multi-million dollar bankruptcy Cryptocurrencies of this platform
Prosecutors said Shin, 38, and the other founder of Terraform, make kwonis behind the entire structure of the cyber currency broker TerraUSD and LunaIt caused investors to lose nearly $40 billion in market value, as the value of the company fell.
Therefore, they froze their assets worth 246.8 billion won (approximately $184.7 million) from the defendants. Houses, cars and other belongings were confiscated.
Do Kwon is currently Arrested in Montenegro accused of forgery of documents. Both South Korea and the United States are trying to extradite Kwon to face criminal charges for his role in Terra’s disappearance, which could lead to a lengthy legal battle.
TerraUSD was marketed as a ‘fixed money‘ (a digital asset backed by a traditional currency), it maintained its peg to the US dollar through a complex algorithm. Moonunsupported cryptocurrency.
However, cryptocurrency Disbanded in May 2022 change for just 10 cents.
The prosecution believes it has been proven that Shin knew the cryptocurrency pricing system was wrong. algorithmically impossible.It has deceived investors by keeping its value artificially high and with fraudulent advertising campaigns.
Also, Shin and his accomplices have already claimed about 500 billion won (approx. 375 million dollars) comes from investors when the two currencies crashed last year.
This scandal on the Terra blockchain, increased regulatory oversight in the field of cryptocurrencies. While the long-term impact on the broader crypto industry is still unclear, the case has already had significant ramifications for those involved.