The financial crimes unit at the Seoul Southern District Prosecutors’ Office has reportedly indicted Terraform Labs co-founder Shin Hyun-seong and nine other individuals for the collapse of the Terra ecosystem.
The 10 individuals were reportedly indicted on charges of fraud, breach of trust and embezzlement and referred to trial after 11 months of investigation. The prosecutor’s office suspected that the individuals involved in the collapse amassed illicit profits of nearly $350 million.
Shin is accused of misleading investors and falsely advertising the product to cause significant losses despite knowing that the project was unfeasible. Prosecutors have also seized the assets of the indicted individuals and estimated them to be worth a total of $180 million (246.8 billion won).
The prosecutor’s indictment comes just days after a district court in Seoul declared that the LUNA token was not a security and doesn’t fall under the purview of the Capital Markets Act. The court had earlier refused the prosecution’s 10 demands of charging Shin for the violation of security law.
