South Korean prosecutors on Tuesday charged Terraform Labs Co-Founder, Hyun-seong Shin (also known as Daniel Shin), and other nine individuals with fraud and other charges, the KBS World news agency reports.
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The prosecutors believe Shin falsely promoted terraUSD (UST) — the failed algorithmic stablecoin — and deceived investors even though he knew the stablecoin's price peg system was algorithmically impossible.
As per the report, the Seoul Southern District Prosecutors' Office also filed charges against nine other individuals of fraud, breach of trust and embezzlement. In late 2022, South Korean prosecutors also indicted Terra's main architect Do Kwon for similar charges in violation of the Capital Markets Act.
In February 2023, the US Securities and Exchange Commission (SEC) filed a civil fraud lawsuit against Do Kwon, saying he orchestrated a "multi-billion dollar crypto asset securities fraud" involving an algorithmic stablecoin and other crypto asset securities.
Montenegrin officials arrested the two men when they tried to enter the country illegally to fly to Dubai using forged travel documents.
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