South Korean prosecutors handed over individuals involved in the case, including Daniel Shin, co-founder of Terraform Labs and former CEO of Chai Corporation, for trial. This is the first time prosecutors have reached a preliminary conclusion in a related case after investigating the Terra-Luna crash for a year.

On the same day, the Joint Financial Securities Crime Investigation Team of the Seoul Southern District Prosecutors Office prosecuted Daniel Shin and other 8 managers and ordinary employees related to the Terra project on suspicion of fraudulent and improper transactions under the Capital Market Act. Prosecutors allege 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 a securities report.

The charges against Daniel Shin include: Violation of Capital Market Law (improper transaction, violation of public offering regulations, unlicensed sales), Violation of Specific Economic Crimes Act (fraud, breach of trust, embezzlement of public funds), Violation of Specific Financial Transaction Information Act, Violation of Electronic Finance Transaction law, forged receipts, malfeasance and commercial breach of trust.