Daniel Shin frozen assets

Seoul freezes an account of Terra co-founder

17.11.2022 16:35 (Updated 17.11.2022 16:11)
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by Yana Popenkova
2 min read

South Korean court approved a local prosecutor’s petition to freeze the assets of Terra co-founder Daniel Shin. Daniel has $105 million in his account. The funds are being seized because authorities needed to get more explanation about the origin of the funds, citing speculation surrounding LUNA.

The businessman was also charged with a breach of duties. He is accused of using customers’ personal information at Chai Corporation, which Shin founded to promote Terra cryptocurrencies. Terra co-founder should have told the investors about the number of tokens issued and the associated risks.

The other Terra founder, Do Kwon, posted tweets regarding the LUNA collapse: “While I was wrong (and terribly so), I maintain there was no fraud.”

Do Kwon has a specific position over Daniel Shin’s case: “There are rumors of certain currently beleaguered agents “causing” the UST depeg, I hope more facts come out over the next few months.”

Kwon also shared a third-party audit from the US firm JS Held. It shows that they spent $2.8 billion to maintain the TerraUSD stablecoin’s dollar peg during the May collapse. In their conclusions, the experts report that the failure was not due to deliberate action or fraud – but to market behavior and the nature of algorithmic stablecoin.

In his tweets, Do Kwon apologized and expressed confidence that other decentralized finance projects would succeed in their mission.

“I believed that the most important use case of crypto is to become decentralized money that transcends politics and nation states. I still believe this today (what is DeFi with centralized money?) – and I hope others succeed in this mission where we have failed.”

Author

  • Previously worked in the arts, now specializes in covering crypto with an emphasis on DeFi, blockchain and mass adoption. Offers simple and clear writing, always looking for new ways to present information. Major in International Relations, minor in English, in a spare time reads postmodern literature, does yoga and watches movies.

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