As a crypto investor who has closely followed the Terra and Luna saga, I find the latest developments deeply concerning. The allegations against Do Kwon and former Chai CEO Shin Hyun-Sung of conspiring to deceive investors with fake transactions are serious and, if proven true, could further tarnish the reputation of the crypto industry.
New evidence has emerged, which South Korean prosecutors believe indicates that Do Kwon, the founder of Terra, collaborated with the ex-CEO of Chai, Shin Hyun-Sung, in deceiving investors through staged transactions.
According to a report by Yonhap News Agency, Kwon Do-Hyeong, one of the founders of Terraform Labs, is accused of colluding with Shin Hyun-Sung, former CEO of Chai Corporation, to mislead investors through staged transactions.
According to reports from the Seoul Southern District Prosecutors’ Office, fresh evidence has been introduced in court regarding a conversation between Kwon and Shin that took place in May 2019. This discussion centered around the Chai payment app, which was utilized by Terraform to handle millions of transactions for Korean customers.
In their conversation during the chat, Kwon proposed to Shin the idea of generating phony transactions that appear authentic. He further mentioned that as more such transactions were processed, the app could blur the lines, making them hard to distinguish, according to the report. Impressed, Shin suggested they should experiment with this approach on a limited scale first and observe the outcomes.
Prosecutors argue this conversation demonstrates that Kwon and Shin intended to manipulate Terra-related operations to deceive investors from the project’s inception. Shin and his co-defendants, however, deny any fraudulent intent in court, attributing the Terra and Luna crash to Kwon’s failed management and external attacks.
After the tragic collapse of Terra in the market, I, as a researcher, would express it by saying: Following the unfortunate incident with Terra, the SEC brought charges against Kwon and Terraform Labs, alleging misrepresentation regarding Terra’s stability to investors. Later in April, a New York jury reached a verdict finding Kwon guilty of fraud. Consequently, Terraform Labs entered into an agreement to pay $4.47 billion in disgorgement and fines as part of a settlement.
As a crypto investor looking back on the events of early 2022, I recall that Terraform Labs’ co-founder made a sudden departure from South Korea in April, around the time when Terra and Luna were collapsing. He was later apprehended in Montenegro in March 2023 for allegedly committing passport fraud. Currently, he is still detained in Montenegrian custody, with New York prosecutors having leveled charges of securities fraud and other offenses against him, totaling eight counts.
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2024-06-17 11:22