The co-founder of Terraform Labs, Hyun-seong Shin, and nine other individuals have been indicted by the financial crimes unit at the Seoul Southern District Prosecutors’ Office in South Korea. The indictments come after an 11-month investigation into the collapse of the Terra ecosystem, with charges including fraud, breach of trust, and embezzlement. The prosecutor’s office believes the individuals amassed illicit profits of almost $350 million and has seized assets estimated to be worth a total of $180 million.
Shin is accused of misleading investors and falsely advertising the product, knowing it was unfeasible. This indictment follows the recent arrest of former CEO Do Kwon and comes just a month after the collapse of the Terra ecosystem, which depegged from its dollar value, resulting in a $40-billion crash.
