Prosecutors Seek Arrest Warrant for Former Tmon CEO Over 'Terra' Bribery and Kickbacks (Comprehensive)

The prosecution investigating the 'Terra·Luna incident' has requested an arrest warrant for the former CEO of the e-commerce company 'Timon' on charges of receiving bribes and profiting during the process of introducing the cryptocurrency Terra as a simple payment method.

According to the prosecution, the Seoul Southern District Prosecutors' Office's Joint Financial and Securities Crime Investigation Team (Head Dan Seong-han) filed an arrest warrant on the 15th for former Timon CEO Mr. A on charges of breach of trust and for Mr. B, who was responsible for lobbying financial institutions related to Terra, on charges of bribery mediation. The substantive hearing for the arrest warrant is scheduled for the 17th.

Mr. A is accused of receiving an illicit request from Shin Hyun-sung, co-founder of Terraform Labs and chairman of Timon's board of directors as well as CEO of Chai Corporation, who was the first in the industry to ask Timon to introduce and promote 'Terra' as a simple payment method, and of pocketing 'Luna' coins as kickbacks. It is reported that Mr. A converted this into tens of billions of won in cash.

Shin's lawyer stated, "There is no fact that Mr. Shin made any illegal or improper requests regarding the defendants' work," and added, "The advisory fees paid were Luna coins worth about 100 to 200 million won annually at the time, and it is common in the startup industry to pay company-related stocks or coins as advisory fees."

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