South Korean prosecutors say they may charge Terraform Labs Pte. co-founder Daniel Shin with fraud for defying the Terra-Luna stable coin advertisement. Despite being warned by financial authorities that “the business of crypto payments is impossible” from the very beginning of the business, the company continues to advertise despite ignoring it.
According to South Korean media YTN, the two co-founders, Kwon Do-hyung (Do Kwon) and Shin Hyun-seong (Daniel Shin), key figures in the Terra- Luna crypto crash, promoted the “business” pay in coins” to investors and emphasize that it is a safe asset.
The prosecution itself also confirmed this through the Financial Supervisory Service that despite being warned by financial authorities that “the business of crypto payments is impossible” from the very beginning. business, but the company continued to advertise despite ignoring it.
In 2018, Daniel Shin, who co-founded Terraform Labs with CEO Do Kwon, advertised that the “Tera” cryptocurrency could be used in real life at any time. This has sent investor expectations soaring, as cryptocurrencies can be considered a “safety asset” if they can be paid out like cash.
It was found that such warnings continued several times in 2019. The prosecution discovered a situation where CEO Kwon and Mr. Shin conspired to continue advertising as if they could soon be used as a payment method for investors.
Under Korean law, if you actually solicit investment by providing false information about your business, you can be charged with fraudulent trading under the Capital Markets Act.
As updated in an earlier Coincu News article, Daniel Shin, who has recently appeared in court three times and was investigated, denied the allegations, saying that he did not intend to deceive investors and said, “I’m just doing my best to innovate the payments business.”
The prosecution has confirmed the facts against the financial authorities and plans to decide sooner or later on whether to request a warrant for Shin’s arrest.
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