Prosecutors investigating the demise of Terra (LUNA) requested that the Ministry of Justice issued a “notice upon arrival” for Terraform Labs CEO Do Kwon and a travel ban for Terra cofounder Shin Hyun-seong.
According to a July 27 article by South Korean publication Heraldcorp, the Seoul Southern District Prosecutor Joint Financial Crimes Investigation Team Director Dan Sung-Han, who is in charge of the investigation into the Terra crisis inquiry, requested that the Ministry of Justice contact Kwon, who is thought to be staying in Singapore, upon his arrival.
Typically, the ‘notice’ is issued when an urgent investigation into the person is necessary. In addition, the District Prosecutor requested that Shin Hyun-seong, co-founder of Terraform Labs and chairman of the Timon board of directors, along with current and former executives, be prohibited from leaving the country. It is also believed to have gained Ministry of Justice clearance.
Kwon is accused of continuing to issue cryptocurrencies while neglecting to notify investors about the risk that the prices of the cryptocurrencies (Terra and Luna) he published may decrease dramatically.
In addition, CEO Kwon and others are charged with violating the legislation controlling pseudo-receipts by “stopping” an investment. This is believed to have happened when they collected investors and convinced them to guarantee a 20 percent stake in Terra if they purchased and entrusted the land.
Chairman Shin was charged with the same offence. On the other side, it is known that Shin Hyun-position seong’s has nothing to do with the current circumstances since his work with Kwon was terminated in March 2020.
The Shin Hyun-Seong residence is invaded
On July 20, prosecutors conducted seizures and searches at 15 sites, including Chairman Shin’s home and seven domestic bitcoin exchanges.
Prosecutors are now analysing the transaction details of Luna, and Terra acquired via a search and seizure on a domestic exchange.
According to sources, the search and seizure also targeted early investors and Terraform Labs contacts. As soon as the prosecution completes its analysis of the gathered evidence, it will notify the investigating officers.