Prosecutors to Notify Upon Arrival of Kwon Do-hyung, CEO Involved in Terra and Luna Incident

Co-founder Shin Hyun-sung, TMON Chairman, Also Subject to Travel Ban

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the 'Terra·Luna crash incident' has confirmed that it has taken a notification measure upon entry against Terraform Labs CEO Kwon Do-hyung.

According to the legal community on the 27th, the Financial Crime Joint Investigation Team (Head Dan Sung-han) of the Seoul Southern District Prosecutors' Office recently requested the Ministry of Justice to apply the notification upon entry measure against CEO Kwon, who is known to be staying in Singapore.

The notification upon entry measure means that as soon as the subject enters the country, the investigative agency is notified of this fact. This is a measure taken by investigative agencies when urgent investigation is needed for a subject suspected of a crime.

Additionally, the prosecution is reported to have requested a travel ban on Shin Hyun-sung, co-founder of Terraform Labs and chairman of the board of TMON, as well as former and current executives. The Ministry of Justice is also known to have approved this.

CEO Kwon is suspected of issuing cryptocurrency despite being aware of the unsustainability risks of Terra and Luna without informing investors. Terraform Labs attracted investors by guaranteeing an annual interest income of 19.4%, and investors claimed that such actions constituted a Ponzi scheme (multi-level financial fraud), submitting a complaint to the prosecution last May.

Co-founder Chairman Shin was also accused of the same charges, but Shin's side maintains that their business relationship with CEO Kwon ended in March 2020 and insists that they are not related to this incident.

Meanwhile, since the 20th, the prosecution has conducted searches and seizures at a total of 15 locations, including Chairman Shin's residence and seven domestic cryptocurrency exchanges. The prosecution is currently analyzing the transaction records of Luna and Terra from domestic exchanges obtained through the searches and plans to summon related parties for investigation once the analysis is complete.