South Korean enforcement agencies found that Terra co-founder Shin Hyun-Seong sold a huge amount of pre-issued Terra (Lunc) tokens, just before the collapse of the project.
Shin Hyun-Seong & Do Kwon are two co-founders of the Terra crypto Project. In May of this year, during a high market volatility situation, the Terra project collapsed with its two native tokens LUNC & TerraUSD badly. Since May 2022, South Korean agencies have been investigating to find out the main culprit behind the whole incident.
A recent report from YTN Korea confirmed that South Korean enforcement agencies successfully seized approximately $100 million from Shin Hyun-Seong. Allegedly he sold huge amounts of pre-issued Luna tokens to those people, who were unaware of the collapse of the project. It was a very easy way for Terra’s co-founder to make money, which was not fair under the basic rules.
The report also noted that Hyun-Seong didn’t only found guilty of making illicit profits but also he leaked Chai customer information to Terra.
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Terra project collapse
In the history of the crypto industry, it was the first time when a highly reputed crypto project collapsed within a few days, thanks to the unique protocol concept-based stablecoin concept of the Terra project.
LUNC , the native token of the old Terra network, & stablecoin TerraUSD was connected through a protocol to make TerraUSD always remain pegged equal to $1 but during the high volatility situation, both of the coins collapsed badly.
The collapse of the Terra project resulted in a very big panic in the crypto sector, which further resulted in downfall of many other crypto projects like Celsius, BlockFi, 3AC & also many other weak model-based crypto projects.
The recent downfall of the FTX exchange along with its sister companies proved that crypto Investors can’t believe in any project blindly.
Read also: It will take years to get funds out from FTX: Report
Korean authorities seize $100M from Terra co-founder
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https://bitcoinik.com/korean-authorities-seize-100m-from-terra-co-founder/feed/
