According to reports, South Korean prosecutors have issued arrest warrants against co-founder Shin Hyun-Seong and three early investors and four technicians of Terra Lab, on accusations of fraud and other crimes. Shin who was the former CEO of Chai Corporation is amongst the firm’s early investors and was a Co-founder of Terraform Labs along with Do Kwon.
The South Korean Police believe that Terra’s fully functional ecosystem of DApps, Anchor’s 20% interest, is itself fraudulent.
All the eight accused people including Shin(37) promoted Stablecoin Terra, and Luna which is the sister coin of Terra. Moreover, Shin and others involved in the fraudulent activity claimed that they would pay an approximate interest of 20% when Terra is deposited.Shin is also accused of unfairly earning profits of 140 billion as he held Luna before starting the business and then sold it when the prices went up.
Under the Capital Markets Act, the prosecution has charged Shin for fraudulent and illegal transactions because prosecutors believe that Luna and other cryp …
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Source: Cryptocurrency - investing.com
