Investigations launched in South Korea about Terra (LUNA) and its founding partners, which suffered a major collapse in May 2022, continue.
As part of these investigations, South Korean prosecutors accused 10 people, including Terra co-founder Daniel Shin, of violating capital markets law regarding the Terra-LUNA crisis, Bloomberg reported.
Prosecutors argued that all 10 of those charged were directly related to Terra, including in marketing, systems development and administration.
Prosecutors also stated that as part of the investigation, they had frozen $185 million (246.8 billion won) of assets linked to the 10 people charged.
Prosecutors stated in their statement that it was impossible to get the algorithm correct, which helps keep Terra's stablecoin TerraUSD at a stable price, and that the Terra project was a fabrication from its inception and TerraUSD was doomed to fail.
Making a statement after the prosecution's accusation, Daniel Shin's lawyer, Kim Ji-dong, used the following statements:
“Since my client left the company two years before the ridiculous incident in May, it had nothing to do with the Terra collapse.
He voluntarily returned to South Korea immediately after the collapse, and for more than 10 months we have been faithfully cooperating with the investigation and contributing to the discovery of the truth."
Speaking in a statement, Attorney General Dan Seong-han said that the prosecution will continue to monitor Bitcoin (BTC) assets and transactions of TerraForm Labs (TFL) and LFG.
Attorney General Terra added that his co-founder Do Kwon cashed some of the Bitcoins last year, but still has millions worth of Bitcoin in a Swiss bank.
*Not investment advice.