NewsletterBreaking: South Korea Seeks Major Arrest In Terra-LUNA Crisis
South Korea’s prosecutors investigating the Terra-LUNA crisis filed an arrest warrant against a former CEO of e-commerce giant TMON on Wednesday. Prosecutors said the former TMON CEO accepted bribes in Terra (LUNA) worth billions in South Korean won to introduce LUNA as a payment method on the e-commerce platform.
The Seoul Southern District Prosecutor’s Office on February 15 requested an arrest warrant against a former CEO of TMON and a broker on charges of bribery, reported a local news media. The arrest warrant will be reviewed on February 17.
Prosecutors believe the former TMON CEO received an improper request from Daniel Shin, co-founder of Terraform Labs, to introduce Terra (LUNA) as a simple payment method on the e-commerce platform and promote it extensively. The CEO is accused of receiving LUNA tokens as a bribe. Daniel Shin is also the co-founder of TMON.
Investigations into the matter further revealed that the former TMON CEO made billions of won by cashing out the LUNA tokens. Massive advertisements and articles on Terra made people believe it was a ‘safe asset’ and invested their money in the token. Moreover, the rise in demand from investors led crypto exchanges to list LUNA.
South Korea Seeks Arrest of Terra CEO Do Kwon
Furthermore, prosecutors seek to investigate whether it has any part in illegal activities in the financial sector. South Korea became one of the top crypto markets in a short period, which also raised crypto crimes in the country. According to a government report last year, crypto contributes 75% to illegal foreign exchange transactions in South Korea.
Meanwhile, South Korean authorities seek to arrest Terraform Labs’ co-founder Do Kwon for the Terra-LUNA crisis. South Korean prosecutors have tracked Do Kwon in Serbia and recently visited the country to find his current location.
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