- Co-founding father of Terra Labs, Daniel Shin will face severe fines.
- Promotion of crashed $UST as payment methods on e-commerce platforms.
- The Financial Prosecutors may issue an arrest warrant on Shin as needed.
In mid May 2022, the crash from the entire Terra network produced a big impact around the crypto market. Thousands and thousands of investors lost their hopes and faced an enormous loss to be Terra holders. Further the collapse of Terra network easily wiped from the crypto space within the second quarter.
Following a crunch, all of the crypto assets in the Terra ecosystem disappeared and dumped to zero. Actually, many users didn’t remember the Terra tokens that have been once alive on the market. For the reason that situation, the Co-founding father of Terraform Labs Pte, Daniel Shin is gradually promoting the crashed Terra-Luna stablecoin $UST.
However, the South Korean government bodies say they might impose a serious charge on Shin for initiating this fraudulent act.
Terraform Labs Co-founder to become Penalized
Being lost on the market, TerraUSD (UST) was inactive in the last 6 several weeks with zero user community available on the market. Witnessing this type of collapsing situation, Shin began to advertise the Terra stablecoin like a payment method on all e-commerce platforms. However, the Financial Supervisory Service elevated multiple warnings to Shin concerning the payments of crypto assets.
As reported by the Electronic Financial Transactions Act, virtual currencies can’t be registered and utilized as a repayment mode in the united states. But, despite a lot of calls in the financial prosecutors, Shin is ongoing his fraud activity.
Further, the Seoul Southern District Prosecutors’ Office made the decision to impose a serious charge on Shin for violating what the law states. Additionally, underneath the Capital Markets Act, an arrest warrant may also be issued.
Furthermore, you will find unsolved cases on Terra Labs and also the founders following the terrible crash in May. Surprisingly, despite several weeks, the location from the Terra Chief executive officer remains indeterminate.
