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Korean e-commerce exec accused of accepting LUNA for shilling Terra Labs

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 125 Views

The former CEO of Tmon, an e-commerce platform, has allegedly earned billions of South Korean won after selling the LUNA tokens he had received from Terra co-founder Shin Hyun-Seong for promotions.

South Korean prosecutors have requested an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform, after taking billions of South Korean won in Terra (LUNA), now known as Terra Classic (LUNC), for promoting Terra as a simple payment gateway. 

Media outlet Dong-A Ilbo reported that the head of the financial and securities joint investigation team at the Seoul Southern District Prosecutor’s Office requested an arrest warrant for bribery charges against the former Tmon CEO, described as “Mr. A,” and a person described as “broker B,” who worked on lobbying in the financial sector in favor of Terra.

Mr. A allegedly received LUNC tokens from Terra co-founder Shin Hyun-Seong, also known as Daniel Shin, who asked him to extensively promote Terra as a simple means of payment. After this, Tmon advertised LUNC and spread the message that the token is a safe asset. According to the investigators, the promotions increased the token’s price by raising investors’ expectations.

The former Tmon CEO has allegedly made billions of won after selling the LUNC tokens received in exchange for the promotions. In addition, the report also highlighted that despite warnings from financial authorities, Shin has reportedly given money to other companies like Tmon to promote LUNC as a safe payment method.

Related: Legal troubles mount for Terraform Labs as Seoul police investigate

On Nov. 14, prosecutors in South Korea called on Shin to cooperate with the investigation of the Terra collapse. The authorities alleged that Shin had held LUNC tokens without investors’ knowledge and earned more than $105 million in illegal sales before the company’s collapse.

The prosecutors in charge of the case have constantly been expanding their investigations and focusing on other people involved. On Nov. 30, 2022, an arrest warrant for Shin, three Terra investors and four engineers responsible for the project were also issued by South Korean authorities.


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