The Terra Labs executives and co-founders appear to be in increasing amounts of legal difficulty. Several Terra workers, including CEO Shin, reportedly had arrest warrants issued against them by South Korean prosecutors.
Co-founders of Terra Might Go to jail?
According to sources, four early investors and four technicians connected to Terra Lab had arrest warrants filed by the Seoul Southern District Prosecutors. In connection with the potential for fraud and other offenses, an arrest warrant has been issued.
The prosecutor's probe into the significant collapse of the Luna and TerraUSD has been expanded. Co-founder Terra Daniel Shin is accused of engaging in market manipulation and fraud. It is thought that the way Anchor's 20% interest was created is in and of itself fraudulent.
In relation to the wrongful gains of more than $106 million (140 billion won) made prior to the Terra Luna collapse, Shin is the subject of an arrest warrant request. It's also been claimed, though, that the co-founder released Terraform customer data. These specifics were distributed by the fintech business he created.
Prosecutors are looking into Do Kwon's whereabouts as this significant announcement was being made. However, Interpol has issued a red notice for Kwon.
Did Luna Carry Any Securities?
However, all of the important individuals and early Terra investors mentioned by Korean prosecutors are still present in Korea. The accused promoted Luna and TerraUSD, two stablecoins. When Terra is deposited, they asserted that they will provide interest close to 20%.
According to the article, the authorities thought that Luna and other digital assets had securities-like qualities. However, during the month of November, the prosecution called Shin in as a suspect more than three times.
The organization has done a thorough examination. While the co-founder of Terra asked for payment for his frozen assets.