Terraform Labs co-founder accused of stealing $ 100 million

According to local journalists, South Korean prosecutors are accusing Terraform Labs co-founder Shin Hyun-sung, also known as Daniel Shin, of defrauding investors and stealing 140 billion Korean won (approximately $ 106 million). Seoul South District Prosecutor Choi Sung-kook summoned his colleague До Квон" href="https://noworries.media/biography/do-kvon/" data-bio-id="3665">Do Kwonto court. South Korean law enforcement authorities consider Daniel Shin’s activities to be fraud and a violation of the local market law. In addition, law enforcement officers accuse Shin of breaching his official duties, as there is evidence that information about Chai Corporation’s clients and funds were used to promote the Terra and LUNA stablecoins. Prosecutors will also question Do Kwon, a colleague, about whether he knew about insider trading and price manipulation to support the price of LUNA. Shin Hyun-sung himself has repeatedly stated that he severed all ties with Terraform Labs co-founder and CEO Do Kwon back in 2020. It was then that Daniel Shin left the company and founded the fintech startup Chai Corporation, where he still holds the position of CEO. However, Korean media outlets claim that Shin’s company used its customers' deposits to help Terraform. Also in July of this year, Shin’s private residence was searched by South Korean prosecutors investigating the Terra-LUNA collapse. In early November, the South Korean prosecutor’s office received evidence that Do Kwon manipulated the price of LUNA. This was reported by the Korean Broadcasting System with reference to a representative of the country’s supervisory agency. According to him, the authorities have a correspondence between Kwon and one of his employees. «I cannot disclose the details, but it was a story of conversations [у месенджері - ред.] in which the CEO of [До Квон] specifically ordered to manipulate prices,» said a member of the South Korean supervisory authority. Currently, Do Kwon is being sued for $ 57 million. 359 investors accuse Kwon and his colleagues of deliberately defrauding investors. However, in order to return the funds to investors and punish Do Kwon and his partners, the founder of Terraform Labs must first be found. Interpol and another 4,400 former Terraform Labs investors are currently working on this.