Shin Hyun-seong, a co-founder of failed stablecoin issuer Terra has apparently been captured by South Korean police with over $100 million.
A fresh report by YTN Korea indicates that a judge has blocked Hyun-assets seong’s at the request of prosecutors.
Hyung-seong has been accused of benefiting from the sale of pre-issued LUNA tokens to unsuspecting buyers before the company’s demise. In addition to leading Chai Corporation, a fintech and payments platform, Hyun-seong serves as general manager.
According to the article, not only is Hyun-seong suspected of illegally profiting from the sale of LUNA but is also suspected of disclosing Chai customer information to Terra.
It all started in May, when billions of dollars worth of UST, Terra’s algorithmic stablecoin, were destroyed when it lost its peg to the US dollar. Do Kwon, co-founder and former CEO has been subject to many inquiries by authorities since then.
Interpol issued a red alert for Kwon in September, requesting law enforcement to arrest him if discovered, a move Kwon characterized as extremely political.
Although Kwon has not surrendered, he admitted in an interview last month that he is to blame for Terra and UST’s demise.
“Whatever problems existed in Terra’s design, its inability to adjust to the brutality of the markets, are all my fault.
As such, I accept full responsibility for the pain I have caused the Terra community, the hundreds of thousands (if not millions) of people who utilised Terra money [and] the Terra ecosystem, which was founded on the stability of [TerraUSD], and the demise of the firms who decided to build on Terra.”