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 he received billions of South Korean won in Terra (LUNA), now known as Terra Classic (LUNC), for promoting Terra as a mere payment gateway.

Dong-A Ilbo Media informed that the head of the Joint Investigation Team for Finance and Securities at the Seoul Southern District Prosecutor’s Office requested an arrest warrant for bribery charges against the former CEO of Tmon, described as “Mr. A” and a person described as “broker B” who lobbied in the financial sector for Terra.

Mr. A allegedly received LUNC tokens from Terra co-founder Shin Hyun-Sung, also known as Daniel Shin, who asked him to widely promote Terra as a simple means of payment. After that, Tmon advertised LUNC and spread the message that the token is a safe asset. According to investigators, the promotions increased the price of the token by raising investor expectations.

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

Terraform Labs’ legal troubles escalate as Seoul police investigate

On November 14, the South Korean prosecutor’s office urged Shin to cooperate in the investigation of the collapse of Terra. Authorities claimed that Shin held LUNC tokens without the knowledge of investors and made over $105 million in illegal sales before the company collapsed.

The prosecutors in charge of the case were constantly expanding their investigations and focusing on other defendants. On November 30, 2022, South Korean authorities also issued an arrest warrant for Shin, three Terra investors, and four engineers in charge of the project.

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