Terra Co-founder Daniel Shin Now Charged With Fraud
Terrible Terra News
One of the co-founders of Terraform Labs, Daniel Shin, plus nine others has now been indicted in South Korea. The reason is that they have been charged for crypto fraud and the conclusion of this came after a months-long investigation by South Korean authorities. The result of this indictment led to the freezing of $ 185 million worth of assets. Terraform Labs is a blockchain-based platform that´s working for the use of stablecoin payments and other financial services. In recent years the company has grown very significantly and especially their native token LUNA has led them to be extremely popular.
Terra Luna Under Pressure
Shin and his co-defendants were apparently engaged in fraudulent activities including market manipulation, insider trading, and embezzlement according to the indictment alleges. The charges also include violations of South Korea´s Capital Markets Act and the Act on the Regulation of Conducting Fund-Raising Business Without a License. The indictment includes the fact that Shin and his co-defendants apparently manipulated the market by creating fake orders just to inflate the value of their native coin LUNA. Using inside information they also allegedly profited from the sale of LUNA tokens and embezzled funds from Terraform Labs. This critically blows Terraform Labs and even the cryptocurrency industry itself. Now there are likely thoughts around the indictments and their aftermath that might make people think through before investing in cryptocurrencies, especially in unregulated markets which South Korea is a part of.
Cryptocurrency Reputations Are Getting Hurt
This case, as with many more, really shows the need for better regulations in the industry of cryptocurrencies. There are many advantages when it comes to cryptocurrencies like decentralization and security, but it also comes with their fare share of negative sides like abuse and fraud. The indictment of Shin and his co-defendants is a friendly reminder of how we are still in the early stages of the world of crypto. Even though governments and regulators work very hard on how to grapple with the situations there are still many struggles lying ahead. But working hard to overcome the obstacles could also be an opportunity to mature and establish the industry as a legitimate and trustworthy means of payment.
Terraform Labs Highlights Risks
In the conclusion of the Terraform Labs indictment, we can surely say that the industry is not gaining from all of it, but there is a small chance of actually stepping up and creating a safer space for the crypto community. There are of course risks when getting into investing in crypto but this setback is also an opportunity and with that also comes greater security and trust which is crucial to the financial systems.