South Korean prosecutors issued court orders to freeze Assets worth about $104 million reportedly 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 blocked a local prosecutor’s request for about 1,400 to Terraform Labs co-founder Shin Hyun-soon, aka Daniel Shin, who reportedly authorized the freezing of 100 million won ($104 million) in assets. A pre-trial freeze order is a precautionary measure to prevent suspects from disposing of criminal proceeds before trial.
Prosecutors have accused Terra’s co-founders of selling the issued cryptocurrency LUNA (now luna classic (LUNC)) without proper disclosure to investors to make about 140 billion dollars. It was accused of making an “unfair” profit of the South Korean won. However, Singh reportedly told prosecutors on Thursday that he did not sell the cryptocurrency at its top price before the token crash.
Hwang Suk-jin, a professor of information security at Dongguk University and a regular speaker on cryptography policy at the South Korean National Assembly, Forkast said: T:
It’s a pre-mining problem. That’s because we didn’t make proper disclosures when issuing tokens.
Professor said, for example, that if an investor “thinks 1,000 tokens have been issued, and in fact he thinks 10,000 tokens have been issued, the investor will inevitably suffer a loss.” ‘ added.
Singh and his Chai corp., a local payment technology company he founded, in launching Chai’s Terra payment service. We are currently under investigation for allegedly using customer information without consent. The payment company was reportedly raided by local authorities on Thursday.
South Korean prosecutors have also been investigating his LUNA collapse since May and issued an arrest warrant for Kwon Do-Hyung, aka Do Kwon. Kwon Do-Hyung is Shin and he co-founded Terraform Labs. 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 the frozen coins belonged to him.
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