Korean E-commerce Exec Allegedly Accepted LUNA To Promote Terra Labs

A Korean e-commerce executive has been charged with collecting billions of South Korean won in Terra (LUNA), presently recognised as Terra Classic (LUNC), for promoting Terra as a simple gateway.
According to reports, the CEO of Tmon, described as “Mr. A,” allegedly agreed to promote Terra Labs on his social media platforms, including Twitter and Instagram, in exchange for a payment of approximately 500,000 LUNA (worth approximately $100,000 at the time). The executive is well-known in the South Korean e-commerce sector and has a sizable social media following.

On November 14, authorities in South Korea requested Terra co-founder Shin Hyun-Seong’s assistance with the probe into the Terra collapse. Authorities claimed that Shin owned LUNC tokens without the knowledge of investors and made over $105 million through unauthorized transactions prior to the company’s demise.

Attempt to Manipulate The Market

A number of LUNA token owners claimed that the executive’s support for Terra Labs was an attempt to manipulate the market and drive up the price of the cryptocurrency. The group also charged the CEO with breaking South Korea’s Fair Trade Act, which forbids false or misleading advertising.

Investigators said the e-commerce executive made South Koreans perceive that cryptocurrencies like LUNA tokens are safe. Its believed that Mr A’s efforts led to the rise of token prices.

But Terra Labs has denied any role in the controversy and made it clear that it does not support any sort of misleading advertising or market manipulation. The business has additionally stated that it is assisting the authorities in their investigation into the matter.

The incident has brought attention to the rising problem of cryptocurrency shilling, in which people or businesses advertise a specific cryptocurrency for personal gain without declaring their financial interests. This tactic is especially common on social media platforms, where influencers and well-known figures can greatly affect consumer sentiment.

Regulators Taking Steps

South Korean regulators have taken steps to increase their control over bitcoin trading and advertising in reaction to the scandal. According to the Financial Services Commission, new regulations mandating cryptocurrency exchanges to confirm the users’ identities and report any questionable transactions will be introduced.

The controversy surrounding the Korean e-commerce executive highlights the difficulties the cryptocurrency sector is encountering as it develops and matures. Although technology provides built-in transparency, there is potential for market manipulation and deceptive advertising due to lack of regulation and control.

It will be interesting to see if the sector can strike a balance between innovation and responsibility or if more regulation is required to guarantee the long-term existence of cryptocurrencies.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing