Former Tmon CEO Facing Arrest Over Terra (LUNA) Bribery Charges

Zinger Key Points
  • The Tmon CEO made billions after selling LUNC tokens received as bribe.
  • Terra (LUNA) co-founder earned $105M in illegal sales.

South Korean prosecutors have recently requested an arrest warrant for a former CEO of Tmon, a popular e-commerce platform, and a broker, in connection to bribery charges involving Terra, previously known as Luna LUNA/USD, and now Terra Classic, LUNC/USD.

What Happened: The prosecutor's office for the Seoul Southern District, specifically the head of the financial and securities joint investigation team, called for the arrest of former CEO, "Mr. A" and "broker B," who lobbied the financial sector in favor of Terra.

According to reports by Dong-A Ilbo, Daniel Shin, also known as Shin Hyun-Seong, gave LUNC tokens to Mr. A, who then allegedly promoted Terra as a simple payment gateway.

Tmon advertised LUNC and emphasized that it was a safe asset, thereby increasing the token's value. Prosecutors claimed the promotions led to the token's price increase and "raised investors' expectations."

Also Read: SEC Proposes Rule Making It Harder For Crypto Firms To Work With Hedge, Pension Funds

Mr. A allegedly profited from selling the LUNC tokens received as a bribe.

In addition to these allegations, Shin has been accused of giving money to other companies, including Tmon, to promote LUNC as a secure payment method, despite warnings from financial regulators.

Why It Matters: The Terra collapse led to an ongoing investigation by South Korean authorities, with prosecutors constantly expanding their investigation and focusing on other individuals involved.

In November 2022, South Korean prosecutors issued an arrest warrant for Shin, three Terra investors and four project engineers, all involved in the Terra collapse.

The investigation's scope is expected to widen as more information is uncovered.

Meanwhile, the allegations against the former Tmon CEO and the broker will need to be proven in a court of law.

Read Next: UK Law Enforcement Uncover Illegal Cryptocurrency ATMs

Photo: Mohamed Hassan from Pixabay 

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Posted In: CryptocurrencyNewsLegalGlobalMarketsBribery ChargesDaniel ShinLunaSouth KoreaTerra ClassicTmon
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