Ex-Terra CEO, Shin Hyun-seong, testified before the prosecution on November 17 denying that he sold tokens when LUNA was nearing its highs
Earlier this week, it was announced that ex-Terra CEO Shin Hyun-seong, or Daniel Shin, had been compelled to appear before South Korean prosecutors for unfairly profiting from the sale of LUNA [now LUNC] tokens.
Shin was charged with “holding LUNA tokens that had been pre-issued without telling regular investors and then allegedly collecting gains of over 140 billion Korean won when he sold the tokens at a high point,” which equated to $105.52 million.
Shin testified before the prosecution on November 17 and indicated that he possessed a large amount of LUNA tokens at the time of the disaster. He also denied selling tokens when LUNA was nearing its highs.
According to local media reports,
“Shin is said to have made a statement to the prosecution to the effect that “more than 70% of the disposed Luna was traded before the price soared, and a significant amount was retained even at the time of the collapse.”
The prosecution just made a decision and declared the LUNA token to be a financial investment security. As a result, it is “seriously considering” bringing criminal charges against Shin under the Capital Markets Act, such as “fraudulent illegal activities.”
The ex-Terra executive is also accused of creating harm to the company by promoting LUNA and the Terra ecosystem‘s native stablecoin using customer information and monies owned by Chai Corporation—the entity where he presently serves as Founder and CEO.
However, a Chai spokeswoman recently informed Watcher Guru through email that the firm has been functioning separately from Terra since the first quarter of 2020. The issued statement also stated that Shin has been “cooperating” with authorities in the ongoing Terra probe and will “continue to do so.”
