Terra Luna Co-Founders To Be Arrested? Here’s What Prosecution Seeks

LUNC News Updates: Legal trouble seems to be mounting up for the Terra Labs Co-founders and executives. Reports suggest that South Korean Prosecutors have issued arrest warrants against several Terra employees including CEO Shin.

Terra Co-founders to face jail?

As per reports, the Seoul Southern District Prosecutors have issued arrest warrants for four early investors with four technicians linked with Terra Lab. An arrest warrant has been issued over the suspicion of fraud and other crimes.

The prosecutor has widened their scope of investigation over the major collapse of the Luna and TerraUSD. While Co-founder Terra Daniel Shin is alleged for doing fraud and market manipulation. It is believed that the design of Anchor’s 20% interest is a fraud in itself.

An arrest warrant against Shin is sought over the unfair gains of over $106 million (140 billion won) incurred before the Terra Luna collapse. However, it also being alleged that the co founder leaked Terraform customer based information. These details were sent out from the fintech startup founded by him.

This major announcement came as prosecutors are investigating the whereabouts of Do Kwon. However, a red notice has been issued against Kwon by Interpol.

Luna carried securities properties?

However, all the key personnel and early investors linked to Terra mentioned by Korean Prosecutors are staying in Korea. The accused promoted TerraUSD, meant to be stablecoin and Luna. They said that they would pay interest close to 20% when Terra is deposited.

The report mentions that the authorities believe that Luna and other digital assets carried securities properties. However, the prosecution has summoned Shin as a suspect over three times in the month of November.

The agency has conducted an intense investigation. While Terra co founder requested compensation for his frozen properties.