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# TERRAFORM LABS CO-FOUNDER INDICTED IN SOUTH KOREA FOR CRYPTOCURRENCY COLLAPSE
South Korean authorities have indicted Terraform Labs co-founder, Daniel Shin, in connection to the collapse of the Terra and Luna cryptocurrencies. Shin faces charges of fraud, breach of duty, and embezzlement. Nine other individuals, including marketers, developers, and managers with ties to Terra, were also charged. Prosecutors have frozen approximately $184.7 million in assets belonging to those indicted.
# SHIN’S LAWYER DEFENDS HIS CLIENT’S INNOCENCE
Shin’s lawyer, Kim Ki-dong, maintains that Shin had no involvement in the Terra and Luna collapse as he left the company two years before the incident. He voluntarily returned to South Korea and has been cooperating with the investigation for over ten months. The statement from Shin’s lawyer alleges that Shin has only been trying to contribute to the fact-finding process.
As investors and cryptocurrency enthusiasts would know, Terra is a blockchain platform for stablecoins (cryptocurrencies pegged to a fiat currency’s value to eliminate price volatility), and its native coin is Luna. However, the cryptocurrency market has always been erratic and unpredictable, causing several controversies and scams involving digital currencies.
The South Korean government has been working to regulate the cryptocurrency market since 2017. Its regulatory framework requires all cryptocurrency exchanges to report users’ real names and eliminate anonymous trading. However, as cryptocurrency’s popularity grows globally, it’s increasingly challenging to regulate the digital currency market effectively.
In conclusion, whether Shin and the other individuals will be found guilty or not remains uncertain. Until then, authorities will continue their investigations and try to prevent further incidents like these. As with all investments, it’s encouraged to practice caution and thoroughly research a cryptocurrency project before investing.
Sources:
– Bloomberg: https://www.bloomberg.com/news/articles/2023-04-25/terra-co-founder-daniel-shin-9-others-indicted-by-south-korea?sref=ExbtjcSG
– Yonhap News: https://en.yna.co.kr/view/AEN20230425009600315?section=search
