FinTech news in Do Kwon category
The US financial regulator accused Kwon and the Singpoare-based crypto firm of offering and selling an inter-connected suite of crypto asset securities, “many in unregistered transactions” from April 2018 to May 2022.
A Seoul court rejected a request from prosecutors for warrants to detain eight people related to Terraform Labs, including the co-founder of Terraform Labs, Daniel Shin, early investors and former engineers. The Seoul Southern District Prosecutors Office told journalist that it is hard to understand that conclusion as the court knows the seriousness of the allegation and the fact that some of the suspects allegedly made money by selling Luna tokens before the collapse. South Korean prosecutors seek arrest warrants for Terraform Labs co-founder, investors and engineers Prosecutors also suspect Shin used customer data from his separate fintech startup called Chai to promote Luna, violating the Electric Financial Transaction Act.
The Seoul Southern District Prosecutors Office confirmed to journalist that it is seeking arrest warrants for eight people including Terraform Labs co-founder Daniel Shin, three Terraform investors, and four engineers of the cryptocurrencies TerraUSD (UST) and Luna, but did not disclose the identities of most individuals. South Korean prosecutors said Wednesday they have requested arrest warrants for eight people related to Terraform Labs for the alleged fraud as the local authorities widen their investigation into the collapse of the TerraUSD and Luna tokens that wiped tens of billions of dollars from the crypto market earlier this year. The prosecutors suspect Shin of taking illegal profits worth approximately $105 million (140 billion won) by selling Luna at the peak without disclosing properly to investors ahead of the Terra-Luna collapse, according to a local media report Yonhap. Shin’s lawyer said Shin left Terraform two years ago before the Terra-Luna collapse, and that he has no ties with the failure, according to local media.
The Seoul Southern District Prosecutors’ Office said Friday that it has kicked off an investigation on Terraform Labs, the organization behind the stablecoin project Terra led by Do Kwon, and assigned the case to its Financial and Securities Crime Joint Investigation Team, a special financial crimes unit brought back recently by the newly appointed justice minister Dong-hoon Han, according to local media.