The Terra (LUNA) explosion was one of the devastating events in the crypto space last year. Investors have lost most of their billions of dollars of funds, and the prices of other crypto assets have plummeted.
Subsequently, South Korean prosecutors investigated the crisis. As a result, they have arrested what is said to be an important player linked to the collapse of the Terra Ecosystem (LUNA).
Prosecutors Arrest Ex-CEO of TMON
South Korean prosecutors recently issued an arrest warrant for the former CEO of e-commerce giant TMON, who has been identified as “Mr. John.” A’. Dong-AIlbo local news agency. informed this is a recent move by the Seoul Southern District Prosecutor’s Office.
The statement alleges that the former executive received billions of South Korean won in Terra (LUNA) token bribes. The funds were intended for the implementation of LUNA as a payment method on the TMON platform.
In addition, the broker, whose name has not been released, was involved in a bribery incident and will be arrested. The report notes that the revision of the arrest warrant will take place on February 17.
The prosecutor’s office believes that Terra’s management made serious mistakes in managing operations with a crypto asset.
They felt that Terraform Labs co-founder Daniel Sheen might have made an inappropriate request to the former TMON CEO. Their deal focused on promoting Terra (LUNA) by including the token as part of the payment options on the e-commerce platform.
Notably, Shin is the co-founder of TMON and may have manipulated his request. The former TMON executive is believed to have received several LUNA coins as a bribe for the request. Further investigation into the issue revealed that the former TMON executive had cashed out LUNA tokens believed to be worth billions of South Korean won.
After alleged bribery, the former CEO of TMON got TMON to publish several promotional articles about Terra. He also introduced the use of LUNA as a payment method on the platform.
The entire Terra governance phase expanded the perception of the token in the crypto space and dramatically increased the demand for LUNA. Subsequently, many crypto exchanges began listing Terra (LUNA) due to growing demand from users and the rising price of the token.
South Korea and cryptocurrency regulation after the Terra (LUNA) fiasco
South Korea has recently taken a stricter stance on its approach to regulating cryptocurrencies since the collapse of Terra. To this end, the South Korea Financial Services Commission (FSC) released new guidelines defining tokens as securities to help securities companies and token issuers understand the class of their services.
According to the regulator, security tokens are tokens digitized using distributed ledger technology. This classification of security tokens puts South Korea in line with the rules of other countries in the Asian region.
Most firms with security licenses accept the regulatory clarity of the South Korean regulator. However, a well-known and large securities firm in the country, Shinhan Investment and Securities, threw open invitation for an alliance with Dr. Shinhan mentioned the benefits of security tokens for investors in compliance with the established standards for issuing and trading tokens.
Featured image from Pixabay, chart from TradingView.com
Credit : www.newsbtc.com
