South Korea holds first court hearing for Terra co-founder Daniel Shin on crypto fraud charges

The Seoul Southern District Court conducted the initial preliminary hearing on Monday for Daniel Shin, the co-founder of Terraform Labs, along with seven other former employees of Terra. This hearing marks an important step in the legal proceedings related to the Terra-Luna cryptocurrency project, which experienced a collapse. Shin, who was indicted on April 25, faces multiple charges, including fraud. On the same day as the indictment, Shin’s legal representatives rejected all the charges leveled against him.

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Seoul prosecutors have charged Daniel Shin with various offenses related to his involvement with Terra-Luna. These charges include violations of the Capital Markets Act, breach of duty, and embezzlement. The prosecutors allege that Shin defrauded investors by promoting the Terra stablecoin as a payment system, despite being aware that such services were prohibited. These accusations suggest a deliberate misrepresentation of the nature and capabilities of the Terra project, potentially leading to financial harm for investors.

In an email response to Forkast on Monday, Shin said he didn’t attend the court today as it was a preliminary hearing and he had no comment.

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