Shin Hyun-seong of 'Terra' indicted on charges of Capital Markets Act violation and fraud.
Host: Reporter Jang Se-jin
Guest: Pureun “Ian” Hong, managing partner at Decent Law Firm
Q. Shin Hyun-seong of 'Terra' indicted on charges of Capital Markets Act violation and fraud
- Shin Hyun-seong, General Representative of Chai Corporation
- Prosecutors recognized the 'securities nature' of Luna Coin… the first indictment case in Korea
Q. What is the full story of the 'Terra-Luna' crash?
- Algorithm-based stablecoins: Luna (LUNA) and Terra (UST)
- "Terra's price will always be $1"
- The formula of '1 Terra = $1' broke
- The collapse of the dollar peg impacted the entire virtual asset market
Q. What is the current status of the investigation into 'Terra-Luna'?
- 'Terra-Luna cryptocurrency incident' led to the arrest of Do Kwon in Montenegro
- 'Terra' Shin Hyun-seong indicted for Capital Markets Act violation and fraud
Q. What is the difference between a dismissed arrest warrant and an indictment?
- Unrestricted investigation: an investigation conducted without the suspect being detained
Q. When is a suspect detained and indicted?
- Detention and indictment occur when there is a risk of flight or evidence tampering
Q. What is detention and indictment?
- Detention and indictment involve requesting a court trial while the suspect is in custody
Q. Will Shin Hyun-seong face an unrestricted indictment?
- Prosecutors indicted 10 people, including 'Terra-Luna' co-founder Shin Hyun-seong, without detention
Q. What are the charges against Shin Hyun-seong in the unrestricted indictment?
- Prosecutors stated, "The Terra project was a fiction that could not have been realized from the beginning"
- Shin Hyun-seong indicted for Capital Markets Act violation and fraud
Q. What is the connection between the 'Terra-Luna' incident and the Capital Markets Act?
- The indictment of Shin Hyun-seong over Terra-Luna marks the first case of recognizing 'coins as securities'
- "The standard for determining whether coins are securities will impact the future of the virtual asset market"
Q. How does the Capital Markets Act apply to Shin Hyun-seong’s charges regarding coin securities?
- "Luna is a security"... the Terra-Luna fraud marks the first indictment under the Capital Markets Act
Q. Why did the court's ruling on the 'Terra-Luna' case diverge?
- In the investigation of the 'Terra-Luna' incident, the key issue is defining 'investment contract securities'
Q. Why is the determination of coin securities so important in the 'Terra-Luna' case?
- If Terra-Luna is recognized as a security, strict regulations will apply
- The case highlights the need for new laws governing coins
Q. What is the future direction of the trial for Terra-Luna co-founders Shin Hyun-seong and Do Kwon?
- Prosecutors emphasize that proving the securities nature is 'key'
