HomeNEWSTerra co-founder forfeits $104 million in assets

Terra co-founder forfeits $104 million in assets


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As per emerging reports, authorities in South Korea has frozen the assets of co-founder of Terra, Daniel Shin. In a report by a local media, South Korea’s Seoul Southern District Court approved the application by local prosecutors’ to freeze about US$104 million in assets belonging to the co-founder. The court, as reported, maintained that Shin illegally accrued those assets through LUNA cryptocurrency.

Terra Co-founder facing investigations after collapse of project

Recall that the Terra Co-founder is currently facing investigations over the collapse of the project. Notably, the crash of the Terra ecosystem manifested last May. The collapse, as believed, was one of the factors that plunged the industry into its prevailing bear market.

Worth noting, the collapse led to the loss of millions of assets by Terra USD(UST) investors. The UST stablecoin dipped from its dollar peg to %0.006 in June. However, after the crisis, Do Kwon renamed the Terra USD to Terra Classic USD(USTC) while Terra(Luna) became rebranded to Terra Luna Classic(LUNC).

Shortly after the collapse of Terra, investigators began to probe Do Kwon and his co-founder, Daniel Shin. In July, South Korean investigators invaded the home of Daniel Shin as part of the probe into the report indicating several circumstances behind the project’s collapse.

Also, South Korean authorities instructed Do Kwon to notify them as soon as he returned to the country. The U.S District Court in Northern California also bought a class-action lawsuit against Do Kwon and Terraform.However, despite the series of investigations on the collapse of Terra, Do Kwon and his co-founder denied the allegation that Terra’s project was a fraud. According to Do Kwon, almost all his net worth had gone down with Terra’s crash.

Local prosecutors accuse Terra Co-founder of accruing unfair profits with the project

Later, local prosecutors nabbed Shin, and declared Kwon wanted. Ever since, the authorities have been probing the Terra co-founder. On Thursday, Shin attended the investigation at the office of the local prosecutors.

According to the prosecutors, he allegedly accrued unfair profits of over US$104 million with LUNA project. Also, he reportedly perfected this before the official issuance of the crypto without any prior disclosure to investors.

More so, the prosecutors also indicted the Terra co-founder of breach of duty. He was alleged to have used the personal information of the customers at Chai Corporation, the payments tech company that he established, to promote Terra’s cryptocurrencies.

Last Wednesday, Do Kwon expressed remorse over the collapse of Terra-LUNA project. However, he still insisted that the collapse is not fraud-oriented.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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