Prosecutors Summon Shin Hyun-sung, Co-founder of Terra and Luna, for Investigation as a Suspect

Allegations of Unfair Gains Amounting to Approximately 140 Billion KRW

[Asia Economy Reporter Yoo Byung-don] Shin Hyun-sung, Chief Executive Officer of Chai Corporation, who is accused of violating the Capital Markets Act in connection with the Terra and Luna crash incident, appeared before the prosecution on the 17th.

The Joint Investigation Team for Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office (Head Dan Sung-han) and the Financial Investigation Division 2 (Chief Prosecutor Chae Hee-man) summoned Shin, who co-founded Terraform Labs with CEO Kwon Do-hyung, for questioning as a suspect on the morning of the same day.

Shin is accused of making an illicit profit of approximately 140 billion KRW by holding the cryptocurrency Luna, which was issued before the business started, and selling it after its price skyrocketed.

The prosecution is considering applying charges under the Capital Markets Act, including fraudulent unfair trading, against Shin, viewing Luna and other cryptocurrencies as securities.

Shin is also accused of causing damage to the company (breach of trust) by using customer information and funds held by Chai Corporation during the promotion of Luna and the stablecoin Terra.

On the 15th, the prosecution conducted another raid on Chai Corporation, a simple payment service provider that used Terra as a payment method, expanding the investigation into allegations of customer information leakage.

In response, Chai Corporation stated on its website, "Customer personal information is securely managed in accordance with the Personal Information Protection Act and other relevant laws," adding, "We plan to sincerely clarify any misunderstandings by the investigative authorities."

This content was produced with the assistance of AI translation services.