Terra-LUNA case: South Korea seeks Arrest
South Korean prosecutors investigating the Terra-LUNA crisis have filed an arrest warrant against a former CEO of e-commerce giant TMON, alleging that he accepted bribes in Terra (LUNA) worth billions of South Korean won to promote the cryptocurrency as a payment method on the e-commerce platform.
Breaking: 🇰🇷 South Korea Seeks Major Arrest In Terra-LUNA Crisis.#SouthKorea #dokwon #TerraClassic $LUNA #CryptoNews pic.twitter.com/s77ub8ZvM9
— CoinGape News (@CoinGapeMedia) February 15, 2023
The Seoul Southern District Prosecutor’s Office requested the arrest warrant on February 15 against the former TMON CEO and a broker on charges of bribery, which will be reviewed on February 17. According to prosecutors, the former CEO received an improper request from Daniel Shin, co-founder of Terraform Labs, to promote Terra (LUNA) as a payment method on the e-commerce platform and was offered LUNA tokens as a bribe.
South Korea Pursues Terra CEO’s Arrest
Investigations into the matter revealed that the former TMON CEO cashed out the LUNA tokens, making billions of won in the process. The rise in demand from investors also led to crypto exchanges listing LUNA.
The prosecutors are also seeking to investigate whether the Terra-LUNA crisis has any part in illegal activities in the financial sector, which have been on the rise in South Korea due to the country’s growing crypto market. According to a government report last year, crypto contributed to 75% of illegal foreign exchange transactions in South Korea.
Additionally, South Korean authorities are seeking to arrest Do Kwon, co-founder of Terraform Labs, for his involvement in the Terra-LUNA crisis. Prosecutors have tracked Kwon to Serbia and recently visited the country to find his current location.
Concerns in South Korean Crypto Market
The Terra-LUNA crisis has sent shockwaves through the South Korean crypto market, with investors worried about the impact of the scandal on the country’s crypto industry. The news of the arrest warrant against the former TMON CEO has added to the uncertainty, as it highlights the potential risks and vulnerabilities of the industry.
The case highlights the need for greater regulatory oversight and transparency in the crypto industry to prevent such scandals from happening in the future. The South Korean authorities are taking steps to address the issue, but it remains to be seen what impact this will have on the crypto market and investor sentiment.
