South Korean Authorities Indict Terraform Labs Co-Founder on Capital Markets Law Violations

South Korean authorities indicted Daniel Shin, co-founder of Terraform Labs, on charges of violating the capital markets law following the collapse of the Terra cryptocurrency project. Several others were also charged, and prosecutors have reportedly frozen $184.7m in assets. Shin’s lawyer stated that he left the company two years before the fallout, had nothing to do with the collapse and had cooperated with the investigation.

Two separate incidents at Terraform Labs

Shin was unfortunately not the only co-founder to have experienced legal troubles. Do Kwon, the other co-founder, was recently arrested in Montenegro on a charge of forgery, according to prior grapevine. Terra was a stablecoin project supported by hedge fund Three Arrows Capital and Celsius, two lenders, that intended to make fair money accessible to everyone anywhere. TerraUSD fell below equity, and the steady descent lasted over a period – something that came as a surprise to participants.

A massive loss for Terra cryptocurrency project

The Algorithmic platform created by Terraform Labs failed – a critical blow to the Terra cryptocurrency project. It did not continue fundraising due to its unsuccessful approach toward money manipulation without approval; something that some industry insiders in biog clearly reckoned as crucial business errors. Subsequently, Three Arrows Capital, a crypto hedge fund, and Voyager, as well as lenders Celsius had filed for bankruptcy. The once-promising and now-shuttered TerraUSD proved to be quite catastrophic to the crypto community.
[h/t Jamie Crawley]