Do Kwon’s colleague may go to jail

The South Korean prosecutor’s office continues to pursue a criminal case on the collapse of the Terra (LUNA) cryptocurrency project. In the near future, law enforcement officials may charge Daniel Shin, co-founder of the blockchain startup, with fraud and arrest him.

Local prosecutors have said they plan to charge Terraform Labs and one of its executives for promoting the TerraUSD (UST) stablecoin. According to them, Shin continued to offer the digital asset as a payment method despite numerous warnings from financial regulators that it was illegal.

As early as 2018, Shin claimed that the stablecoin UST would be available as a payment method on online platforms for users in South Korea. However, the country’s Financial Supervisory Service has repeatedly informed the entrepreneur that, according to the Electronic Financial Transactions Act, virtual assets cannot be registered as a legal method of payment for goods and services.

As a reminder, in early October, Shin refused to testify about the Terra-LUNA collapse. He claimed that he broke off relations with Terraform Labs co-founder and CEO До Квон" href="https://noworries.media/biography/do-kvon/" data-bio-id="3665″ data-wpel-link="internal">Do Kwonback in 2020. It was then that Shin left the company and founded the fintech startup CHAI Corp. where he still serves as CEO. Also in July of this year, Shin’s private residence was searched by South Korean prosecutors investigating the Terra-LUNA collapse.

As for the developer of the cryptocurrency Luna, Do Kwon is being sued for $ 57 million. 359 investors accuse Kwon and his colleagues of deliberately defrauding investors. At the moment, Interpol and another 4,400 former Terraform Labs investors are trying to find the founder of Terraform Labs, although nothing is known for certain about his whereabouts.