Korean E-commerce CEO Allegedly Accepts LUNA to Endorse Terra Labs

Korean E-commerce CEO Allegedly Accepts LUNA in Exchange for Endorsing Terra Labs

The former CEO of the e-commerce platform Tmon is said to have made billions of South Korean won by selling the LUNA tokens that Terra co-founder Shin Hyun-Seong had given him in exchange for marketing.

After investing billions of South Korean won in Terra (LUNA), now known as Terra Classic (LUNC), to promote Terra as an easy payment gateway, South Korean prosecutors have asked for an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform.

According to Dong-A Ilbo media outlet, the Seoul Southern District Prosecutor’s Office’s head of the financial and securities joint investigation team has asked for an arrest warrant for the former Tmon CEO, “Mr. A,” and a man named “broker B,” who sought to lobby the financial industry on behalf of Terra.

According to Mr. A, Terra co-founder Shin Hyun-Seong, also known as Daniel Shin, gave him LUNC tokens in exchange for heavily promoting Terra as a convenient form of payment. 

Following this, Tmon promoted LUNC and spread the word that the coin is a secure investment. 

The investigators claim that the marketing raised the token’s price by heightening investors’ expectations.

Selling the LUNC tokens acquired in exchange for the marketing is said to have brought in billions of won for the former Tmon CEO. 

The article also noted that despite warnings from banking regulators, Shin allegedly gave money to other businesses like Tmon to advertise LUNC as a secure payment option.

Prosecutors in South Korea requested Shin’s assistance with investigating the Terra collapse on November 14. 

Before the company’s demise, the authorities claimed that Shin had made more than $105 million in unlawful transactions while holding LUNC tokens without investors’ knowledge.

The prosecutor in charge of the case has continuously broadened their inquiries and concentrated on other parties implicated. 

On November 30, 2022, South Korean authorities filed arrest warrants for Shin, three Terra investors, and four of the project’s engineers.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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