Korean e-commerce exec accused of accepting LUNA for shilling Terra Labs

South Korean prosecutors have requested an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform, after taking billions of won in LUNA (LUNA), now known as LUNA Classic (LUNC), for promoting Terra as a simple payment gateway. 

Media outlet Dong-A Ilbo reported that the head of the financial and securities joint investigation team at the Seoul Southern District Prosecutor’s Office requested an arrest warrant for bribery charges for the former Tmon CEO described as “Mr. A” and a person described as “broker B” who worked on lobbying in the financial sector in favor of Terra.

Mr. A allegedly received LUNC tokens from Terra co-founder Shin Hyun-Seong, also known as Daniel Shin, who in return asked him to extensively promote Terra as a simple means of payment. After this, Tmon advertised LUNC and spread the message that the token is a safe asset. According to the investigators, the promotions led to an increase in the token’s price by raising investors’ expectations.

The former Tmon CEO has allegedly made billions of won after selling the LUNC tokens received in exchange for the promotions. In addition to this, the report also highlighted that despite warnings from financial authorities, Shin has reportedly given money to other companies like Tmon to promote LUNC as a safe payment method.

Related: Legal troubles mount for Terraform Labs as Seoul police investigate

On Nov. 14, prosecutors in South Korea called on Shin to cooperate in the investigation of the Terra collapse. The authorities alleged that Shin had held LUNC tokens without the knowledge of investors and earned more than $105 million in illegal sales before the collapse of the company.

The prosecutors in charge of the case have been constantly expanding their investigations and focusing on other people involved. On Nov. 30, an arrest warrant for Shin, three Terra investors and four engineers responsible for the project were also issued by South Korean authorities.

All Dutch and English crypto news!

Crypto analyse: zo kan Cardano (ADA) concurrent Ethereum inhalen in 2023

Cardano is gisteren meer dan 11 procent gestegen. Een positieve beweging na een aantal dagen van dalende koersen. In deze analyse richten we ons op...

The impact of the Credit Suisse bank crisis on the crypto market

The show Macro Markets, hosted by Marcel Pechman, which airs every Friday at 12 pm ET on the Cointelegraph Markets & Research YouTube channel, explains...

Seized exchange Bitzlato allows users to withdraw 50% of Bitcoin

Russia-linked cryptocurrency exchange Bitzlato has managed to partly restore access to user funds despite being officially seized by European authorities. Bitzlato has enabled its users to...

Visa: Token bridges were a favored target for thieves in 2022

According to the global payment provider Visa, 2022 became a record-breaking year for cryptocurrency thefts, with over $3 billion stolen in on-chain thefts. Cryptocurrency bridge...

Beste exchanges

Koop je crypto bij Bitvavo