Benzinga - South Korean prosecutors have recently requested an arrest warrant for a former CEO of Tmon, a popular e-commerce platform, and a broker, in connection to bribery charges involving Terra, previously known as Luna (CRYPTO: LUNA), and now Terra Classic, (CRYPTO: LUNC).
What Happened: The prosecutor's office for the Seoul Southern District, specifically the head of the financial and securities joint investigation team, called for the arrest of former CEO, "Mr. A" and "broker B," who lobbied the financial sector in favor of Terra.
Seoul prosecutors requested an arrest warrant on the former CEO of ec-ommerce giant Tmon for allegedly receiving bribes from Terra co-founder Daniel Shin in exchange for promoting Terra as a payment method, the Seoul Southern District Prosecutors Office confirmed with me via text.— Danny Kunwoong Park (@ParkKunwoong) February 15, 2023
Tmon advertised LUNC and emphasized that it was a safe asset, thereby increasing the token's value. Prosecutors claimed the promotions led to the token's price increase and "raised investors' expectations."
Also Read: SEC Proposes Rule Making It Harder For Crypto Firms To Work With Hedge, Pension Funds
Mr. A allegedly profited from selling the LUNC tokens received as a bribe.
In addition to these allegations, Shin has been accused of giving money to other companies, including Tmon, to promote LUNC as a secure payment method, despite warnings from financial regulators.
Why It Matters: The Terra collapse led to an ongoing investigation by South Korean authorities, with prosecutors constantly expanding their investigation and focusing on other individuals involved.
In November 2022, South Korean prosecutors issued an arrest warrant for Shin, three Terra investors and four project engineers, all involved in the Terra collapse.
The investigation's scope is expected to widen as more information is uncovered.
Meanwhile, the allegations against the former Tmon CEO and the broker will need to be proven in a court of law.
Read Next: UK Law Enforcement Uncover Illegal Cryptocurrency ATMs
Photo: Mohamed Hassan from Pixabay
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.