Terraform Labs co-founder Shin Hyun-Seong, also known as Daniel Shin, has reportedly had his first hearing on charges related to alleged illicit proceeds from the sale of Terra (LUNA).
According to a July 10 report by News1 Korea, a pre-trial hearing for Shin and 7 alleged accomplices began in a Seoul Southern District Court following his indictment in April. Prosecutors reportedly said they misled investors and manipulated the price of certain tokens through media coverage and transactions starting in 2018, resulting in "unfair gains" of approximately $462.9 billion. won, more than $354 million at press time.
Shin reportedly sold approximately $118 million worth of LUNA before the token's price crashed in May 2022. He later founded fintech firm Chai Corporation, where he reportedly employed similar tactics to turn a profit. illicit use of investor funds.
Shin's lawyer has previously denied reports suggesting that he "sold Luna at a high point and made a profit or that he made a profit through other illegal methods." Shin's LinkedIn profile showed that he had not been involved with Terra since January 2020, but this information apparently would not include any investment with company shares or tokens.
Related: $176 million of Do Kwon's assets are frozen: Report
do kwon, one of Terra's other co-founders, was arrested in Montenegro in March for allegedly using forged travel documents. In June, the authorities sentenced him to four months in prison, but could face extradition to the US or South Korea upon completion of his sentence: South Korean prosecutors issued an arrest warrant to Kwon in September 2022 for allegedly violating the country's capital market laws.
Terra crashed in May 2022, the first in a series of dominoes that resulted in the crypto market crashing. The platform's algorithmic stablecoin, USTC, depegged from the US dollar, prompting authorities to investigate Kwon and Shin's alleged involvement in any illicit transactions before and during the crash.
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