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Shin Hyun-sung, former co-CEO of Terraform Labs, and other members of the so-called "Terra Project" have been put on trial. Prosecutors determined that while the market capitalization of 50 trillion won evaporated, Shin's gang disposed of coins for a profit of 4 billion won.

Reporter Kim Deok-hyun reports.

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Until three weeks before the
crash, Hyunsung Shin emphasized the advantages of payment services using the Terra blockchain. [Hyunsung Shin/Co-founder of Terraform Labs: Chai has grown and evolved a lot since it was launched as Terra 600 dapp. You can charge it with Terra through Terra Station and use it for payment....]

Prosecutors put 3 people on trial, including Mr. Shin, eight who led the so-called "Terra Project" and two who helped lobby and others.



Prosecutors determined that since September 1, when the project was conceived, they had been conducting business by gathering investors even though they knew that the project itself was fictitious.

In addition, by developing a bot and repeating rotating transactions, it was concluded that the transaction volume of Terra coin, which was 8 trillion won, was inflated by about 2 times.

[Dan Sung-han/Chief of the Joint Financial and Securities Crime Investigation Division of the Seoul Southern District Prosecutor: The limit that can be made to fix the price was exceeded by trading manipulation, and the prices of Terra Coin and Luna Coin collapsed together. About 10 trillion won in market capitalization evaporated....]

In particular, just before the crash, it was judged that they had disposed of their privately owned coins and made a profit of more than 2018 billion won.

The prosecutor's office, which previously collected 9.2 billion won in criminal proceeds against Mr. Shin and others, plans to continue investigating celebrities who initially invested about 10 billion won and obtained profits of 50 billion won.

Kwon Do-hyung, who was charged by Montenegrin authorities with forging passports and is set to stand trial on 4 next month, recently reportedly argued through his lawyer that the fraud charges brought by the U.S. Securities and Exchange Commission were groundless and that the lawsuit be dismissed.

(Video Interview: Shin Dong-hwan, Video Editing: Yoon Tae-ho)