South Korea’s Authorities Bring Criminal Charges Against Terraform Labs Co-founder

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South Korean prosecutors have brought charges against Terraform Labs (TFL) co-founder Daniel Shin and nine other employees of the company for fraud and violation of capital markets law.

They have stated that the defendants were aware that the mechanism to maintain the price of the algorithmic stablecoin TerraUSD (UST) using the LUNA token was not working and caused “astronomical damage” to investors, earning 436 billion won (~$347 million).

As part of the investigation, the authorities have frozen 247 billion won (~$197 million) of TFL assets and requested the freezing of funds at the Swiss bank Sygnum, where TFL co-founder and CEO Do Kwon transferred 10,000 BTC.

In March, Kwon was arrested in Montenegro while attempting to flee using forged documents.

The US has requested his extradition and charged him with eight counts, including securities fraud and market manipulation.