S.Korean Authorities Screws Terra Co-founder Shin Of LUNA $100M Gains 

• Daniel Shin under South Korean investigation for $100 million mismatch of gains.
• Allegation of illegal use of Chai Corporation’s funds in manipulation of LUNA and Terra stablecoins.
• Shin is in the limelight in connection with the Luna crash and ill-gotten profits.

Shin Under Investigation 

South Korean authorities call Daniel Shin for investigation claiming over $100 millions as ill-gotten profits.

As per the media reports, Shin hoarded LUNA tokens which was pre-issued while avoiding the sight of regular investors.Finally having 140 billion Korean Won (approx $106 million) by fraudulent activity.

Officials regarded this as fallacious and count it as illegal in terms of regional capital market laws. According to Bloomberg, in July, South Korean prosecutors raided the apartment of Terraforms co-founder, Daniel Shin. The authorities investigated him for allegations claiming his unlawful operations in the Luna Terra crash.

Authorities also wanted to seize the emigration of present and ex-employees of Terraform. Shin noted that since late 2020, he had not made any conversations with Do Kwon, CEO and founder of Terraform Labs. At that time, he left Terraform and formed another payment technology company, Chai Corporation.

According to The Coin Republic, Do Kwon and Daniel Shin started Terraform Labs with an objective to compete with global payments giant PayPal in 2018. But in May 2022, it’s UST algorithmic stablecoins of network lost its value in terms of US dollar, leading to liquidation of LUNA tokens which finally resulted in the ‘Black swan’ event of Luna Terra collapse.This led  to wipeout of almost $60 billions from the entire crypto market.

Further, a project Terra 2.0 got approved which consists of all new LUNA tokens, and the past network’s tokens were termed as “LUNA classic” (LUNC). At the time of writing, LUNC is trading at $0.0001643 with a trading volume of $155.61 million in the last 24 hours.

LUNA’s Plunge and Shin’s Profit

The officials also stated that Shin involved Chai Corporation’s customer’s funds and data in providing support to LUNA and Terra stablecoins. Luna crash resulted in BTC ($16,583) fall and caused a loss of approx over $300 billion all over the crypto industry.Also, the Terra’s downfall and its massive sellout has forced major crypto hedge fund Three Arrow Capital, Voyager Digitals and Celsius Networks to file for Bankruptcy.

As reported by Bloomberg, in a text message from the Prosecutor’s office, the court has issued a arrest warrants in name of Do Kwon and five others being accused of violating country’s capital market laws.The officials stated that they all were in Singapore,

But from a certain period of time, Kwon remains anonymous with his location.He also apologized for the Terra collapse, mentioning in his tweet- “I think the hardest thing about the current situation is having to contend with so much astronomical loss.” As per the investigation of South Korean prosecutors, they are confirming the facts around Shin’s hand in insider trading and market manipulations of LUNA.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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