South Korean prosecutors have transferred Terraform Labs co-founder and former Chai Corporation CEO Daniel Shin and other persons involved in the case for trial.

It is reported that the Financial and Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutors' Office in South Korea has filed a non-custodial prosecution against Daniel Shin and other eight managers and ordinary employees related to the Terra project on suspicion of fraudulent and unfair transactions under the Capital Markets Act.

Prosecutors said in the indictment that they minted “investment contract securities” Luna tokens between April 2019 and May 2020, but distributed and sold them to investors without filing securities reports.

Daniel Shin is accused of: Violation of the Capital Markets Act (unfair trading, violation of public offering regulations, unlicensed sales), violation of the Specific Economic Crimes Act (fraud, breach of trust, embezzlement), violation of the Specific Financial Transaction Information Act, violation of the Electronic Financial Transactions Act, falsification of receipts, malfeasance and commercial breach of trust. (Newsis)