Former Tmon CEO Faces Arrest for Bribery in Terra Classic Promotion

Prosecutors in South Korea have sought an arrest warrant for the ex-CEO of Tmon. He allegedly received billions of South Korean won in LUNC tokens for promoting Terra as a payment gateway. The former CEO, known as “Mr. A,” reportedly received the tokens from Terra co-founder Shin Hyun-Seong. Shin supposedly asked him to promote Terra as a payment method extensively.

Media outlet Dong-A Ilbo reported that “broker B,” involved in lobbying the financial sector for Terra, also faced bribery charges. The promotions allegedly boosted the token’s value, raising investor expectations and enabling the ex-Tmon CEO to earn billions by selling the LUNC tokens received in exchange.

Despite warnings from financial authorities, Shin has reportedly given money to other companies like Tmon to promote LUNC as a safe payment method. In addition, prosecutors in South Korea called on Shin to cooperate with investigating the Terra collapse on Nov. 14, 2022. 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.

Amid the expanding investigation, South Korean prosecutors issued an arrest warrant on Nov. 30, 2022, for Shin, three Terra investors, and four engineers responsible for the project. In addition, the prosecutors in charge of the case have focused on other people involved.

Financial authorities warn against fraudulent token promotions.

The Terra Classic case highlights the importance of regulatory authorities’ warning against fraudulent token advertisements. As the crypto market becomes more popular and volatile, investors must be wary of promoters who make unrealistic claims and promises.

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Token projects prioritizing marketing over product development, such as Terra Classic, are particularly susceptible to fraud. Promoters get tokens for advertising and use them to inflate ticket prices, creating unrealistic expectations and leading to eventual market collapse. This cycle is dangerous and unsustainable.

However, the Terra Classic case reminds investors to be cautious and conduct thorough research before investing in any token. Additionally, it underscores the importance of regulatory authorities in cracking down on fraudulent activity in the crypto market.

This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.

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