Political Affairs Committee Financial Services Commission Audit Today
Kim Ji-yoon, CEO of DSRV Labs
Shin Hyun-sung, Head of Chaiholdco, and Others Focused on Terra Incident Investigation
[Asia Economy Reporter Ji Yeon-jin] The National Assembly's National Policy Audit on the Financial Services Commission by the Political Affairs Committee scheduled for the 6th is expected to focus on virtual asset issues, including the Terra and Luna incidents.
On that day, the Political Affairs Committee summoned Kim Ji-yoon, CEO of DSRV Labs, and Shin Hyun-sung, Chief Executive of ChaiHoldCo, as witnesses. DSRV Labs is a validator company for Terra, but there have been suspicions that it is the Korean branch of Terraform Labs, the developer of Terra Luna coins.
Additionally, CEO Shin co-founded Terraform Labs with CEO Kwon Do-hyung. Following the Terra Luna crash incident, Terra investors filed complaints against CEO Kwon and CEO Shin in May for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and charges of illegal fundraising. Subsequently, the prosecution conducted a search and seizure of CEO Shin's residence.
The Arowana coin manipulation allegations will also be intensely questioned that day. The Arowana coin was listed on the virtual asset exchange Bithumb last April, and within 30 minutes, the price of one coin skyrocketed from 50 won to 53,800 won, raising suspicions of market manipulation.
The Arowana token is a virtual asset usable on the digital gold platform Arowana and is known to investors as the 'Hancom Token.' Hancom With, a KOSDAQ-listed affiliate of the Hancom Group, announced that it invested in the Arowana token issuer (Arowana Tech) through its Singapore subsidiary (Hancom Singapore).
However, after reports emerged that Kim Sang-chul, chairman of Hancom Group, was the actual owner of the Arowana coin issuer and allegedly attempted to create slush funds through the Arowana coin, Bithumb designated the Arowana coin as an investment caution item but lifted the designation a month later. Subsequently, internal whistleblower reports revealed that the Arowana coin was hastily listed under instructions from Bithumb's higher-ups. Yang Ki-dae, a member of the Democratic Party of Korea, also urged investigations into the Arowana coin price manipulation during last year's National Police Agency audit.
The Gyeonggi Nambu Provincial Police Agency is verifying the authenticity of recorded conversations related to Kim Sang-chul's slush fund creation and coin price manipulation. It is reported that since July, they have been analyzing related accounts and reviewing applicable laws. In September, additional accounts were seized for further analysis.
The Political Affairs Committee plans to summon former Bithumb Korea Chairman Lee Jung-hoon and former Exstock CEO Park Jin-hong as witnesses to question related suspicions during the audit. However, former Bithumb Korea Chairman Lee Jung-hoon submitted a letter of absence to the committee members on the 30th of last month. Lee stated, "Due to health issues and criminal litigation, it is difficult to appear as a witness at the audit on the 6th," adding, "Since 2020, I have been diagnosed with severe depression and panic disorder. I have long withdrawn from management as I am unable to engage in normal activities such as meeting outsiders."
Meanwhile, Dunamu CEO Lee Seok-woo will also appear at the audit to answer questions regarding fee income and the operation of the Investor Protection Center. Initially, the Political Affairs Committee sought to summon Dunamu Chairman Song Chi-hyung as a witness, but since Chairman Song is currently in the United States and unable to attend, CEO Lee was summoned instead.
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