$104,000,000 Seized From Terra (LUNA) Co-Founder by South Korean Authorities: Report
South Korean authorities have reportedly seized over $100 million from Shin Hyun-seong, the co-founder of collapsed stablecoin issuer Terra (LUNA).
According to a new report by YTN Korea, a court has frozen the funds of Hyun-seong at the request of prosecutors.
Hyung-seong is accused of selling pre-issued LUNA tokens to unaware customers before the firm’s collapse and immediately realizing the profits. Hyun-seong is also the general manager of payments platform and fintech firm Chai Corporation.
According to the report, Hyun-seong is not only suspected to have earned illicit profits from selling LUNA, but he is also accused of leaking Chai customer information to Terra.
Terra initially collapsed in May after UST, its algorithmic stablecoin, lost its peg to the US dollar, wiping out billions of dollars. Since then, co-founder and former CEO Do Kwon has faced numerous investigations from authorities.
In September, Interpol issued a red notice for Kwon, calling upon law enforcement to arrest him if spotted, a move Kwon said was highly political in nature.
Though Kwon has not turned himself in, he has taken responsibility for the downfall of Terra and UST, saying in an interview last month that it was his fault and his fault alone.
“Whatever issues existed in Terra’s design, its weakness [in responding] to the cruelty of the markets, it’s my responsibility and my responsibility alone.
So for the community that engaged in the Terra ecosystem, used its apps, sent tokens and coins into many protocols, the downfall of the companies that chose to build on Terra, for the hundreds of thousands if not millions that used Terra currency [and] the Terra ecosystem which was all built on the stability of [TerraUSD], I own up to that responsibility fully and it’s not easy.”
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The post $104,000,000 Seized From Terra (LUNA) Co-Founder by South Korean Authorities: Report appeared first on The Daily Hodl.