The South Korean prosecutors may charge the co-founder of Terraform labs whose Terra Luna crashed in May. Shin allegedly promoted Terra Luna stablecoin as a payment method, despite multiple warnings from financial regulators.
According to local media outlet YTN, in 2018, Daniel Shin repeatedly stated that the Terra stablecoin will be available as a payment method on the e-commerce platforms for South Korean users.
Whereas Financial Supervisory Service informed Shin several times that virtual assets cannot be registered as a payment method under the Electronic Financial Transactions Act.
Several Southern District prosecutors’ office confirmed the YTN report to Forkast, that Daniel Shin may face charges of fraud under the Capital Market Acts.
Since May 2022, South Korean authorities have been investigating the failure of Terra Luna. Terra’s collapse has affected the crypto market with price of cryptocurrencies nearing all-time lows.