Daniel Shin

May Face Charges Of Fraud

November 28, 2022

South Korean prosecutors may charge

Daniel Shin,

co-founder of Terraform Labs, with fraud.

He allegedly

promoted Terra-Luna stablecoin as a payment method,

despite multiple warnings from financial regulators.

According to local media outlet YTN,

in 2018 Shin repeatedly stated

that the Terra stablecoin will be available as a payment method on the e-commerce platform 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.

Seoul Southern District Prosecutors Office confirmed the YTN report to Forkast, that Daniel Shin may face charges of fraud under the

Capital Markets Act.

Since May, South Korean authorities have been investigating the

failure of Terra-LUNA.

Terra collapse

affected hundreds of thousands of investors around the world.