Prosecutors consider  ‘Ponzi Fraud’ charges against Terra CEO

May 20, 2022

According to local news reports, South Korea prosecutors are looking at whether to bring Ponzi Fraud charges against the Terra founder Do Kwon.

Earlier, five South Korean investors filed criminal complaints against Kwon and co-founder Daniel Shin for fraud.

A Singporean citizen had also filed a police complaint against the Terra founder after LUNA and UST crashed over 99%.

South Korean politicians have also called on Do Kwon to attend a parliamentary session over LUNA collapse and its ripple effect all over the crypto market.

Terra founder was also ordered to pay 100 billion won or $78 million in taxes by South Korea’s National Tax Service.

Terra founder has proposed creating a new chain without the stablecoin.

Reportedly, around 280,000 investors were holding 70 billion LUNA coins.