2 - 4 minute read
South Korea has indicted Daniel Shin, the co-founder of Terraform Labs, for violating capital markets law and other charges. Shin was indicted alongside nine others, and prosecutors have frozen assets worth 246.8 billion won, or $184.7 million, from those indicted. Shin’s lawyer has denied any involvement in the collapse of the Terra cryptocurrency project, stating that he left the company two years before the fallout. However, Shin voluntarily returned to South Korea immediately after the collapse and has been cooperating with the probe for over 10 months.
The collapse of Terra last summer sent shockwaves through the crypto markets, causing bankruptcies among various crypto firms, including hedge fund Three Arrows Capital and lenders Voyager and Celsius. The collapse was caused by TerraUSD plunging from its 1:1 peg with the US dollar. Shin’s co-founder, Do Kwon, was indicted in Montenegro last week following an arrest on charges of forgery in March.
The news of Shin’s indictment highlights the importance of following regulations and being transparent in the crypto market. The collapse of Terra and the ensuing bankruptcies demonstrate the potential risks of investing in the crypto market.
As the crypto market continues to grow and evolve, traders should remain aware of the potential risks and opportunities. It is important to conduct thorough research and due diligence before investing in any crypto asset. Traders should also keep up-to-date with regulatory changes and announcements to ensure compliance with relevant laws and regulations.
The Bottom Line
The indictment of Daniel Shin and others involved in the Terra cryptocurrency project serves as a reminder of the importance of following regulations and being transparent in the crypto market. Traders should remain vigilant and conduct thorough research before investing in any crypto asset. The collapse of Terra and ensuing bankruptcies illustrate the potential risks of investing in the crypto market.