- Co-founder of Terra Labs, Daniel Shin will face severe fines.
- Promotion of crashed $UST as payment methods on e-commerce platforms.
- The Financial Prosecutors may issue an arrest warrant on Shin if needed.
In mid May 2022, the crash of the entire Terra network created a huge impact on the crypto market. Hundreds of thousands of investors lost their hopes and faced a huge loss for being Terra holders. Further the collapse of Terra network wiped off the crypto space in the second quarter.
Following the crunch, all the crypto assets from the Terra ecosystem vanished and dumped to zero. In fact, many users forgot the Terra tokens which were once alive in the market. In that case, the Co-founder of Terraform Labs Pte, Daniel Shin is slowly promoting the crashed Terra-Luna stablecoin $UST.
However, the South Korean authorities say they may impose a severe charge on Shin for initiating this fraudulent act.
Terraform Labs Co-founder to be Penalized
Being lost in the market, TerraUSD (UST) was inactive over the past 6 months with zero user community in the marketplace. Witnessing such a collapsing situation, Shin started to promote the Terra stablecoin as a payment method on all e-commerce platforms. However, the Financial Supervisory Service raised multiple warnings to Shin regarding the payments of crypto assets.
As per the Electronic Financial Transactions Act, virtual currencies cannot be registered and used as a payment mode in the country. But, despite so many calls from the financial prosecutors, Shin is continuing his fraud activity.
Further, the Seoul Southern District Prosecutors’ Office decided to impose a severe charge on Shin for violating the law. In addition, under the Capital Markets Act, an arrest warrant can also be issued.
Additionally, there are unsolved cases on Terra Labs and the founders after the terrible crash in May. Surprisingly, even after months, the whereabouts of the Terra CEO remains indeterminate.
