2023-07-11 01:35:16
© Reuters Co-founder of Terra (LUNA) faces trial in South Korea
CriptoFácil – The co-founder of the network, Daniel Shin, faced his first trial in South Korea. A preliminary hearing was held in Seoul this Monday (10), according to the local News 1 portal. Initially, the trial was scheduled for May 26, but it was postponed. Shin is on trial alongside seven former Terraform Labs employees, according to the report.
He was charged in April with fraud and violating the capital markets law. Prosecutors announced at the time that they had frozen more than 246 billion, about $184 million in assets. According to ChosunBiz, the next preparation date for the trial is August 28.
Shin, together with Do Kwon, created Terraform Labs, responsible for the Terra network (LUNA) in 2018. The algorithmic stablecoin, Terra USD, lost its peg against the US dollar in May 2022. With the collapse of Terra, almost $1 trillion in the cryptocurrency market.
It took until April 2023 for cryptocurrency markets to return to pre-Earth collapse levels.
Earth (MOON)
In turn, Kwon, considered the greatest articulator of the Earth (LUNA) is facing a sentence of four months in Montenegro for falsifying a passport. Both South Korea and the United States are seeking Kwon’s extradition after serving his sentence in Montenegro.
In early June, local media reported that Do Kwon had been placed in custody for extradition while Montenegro considered South Korea’s extradition request. However, the application can take up to six months.
South Korea issued an arrest warrant for Kwon in September, ahead of his arrest in Montenegro. New York authorities charged Kwon with securities fraud in March, and he also faces SEC charges.
In both nations, the US and South Korea, Kwon is expected to be imprisoned pending trial in which he must be convicted as the person largely responsible for the UST’s bankruptcy.
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