After the former CEO of Tmon, a Korean e-commerce platform, was accused of taking billions of won from Terra (LUNA), which is now known as Terra Classic (LUNC), in exchange For promoting Terra as a simple payment gateway, South Korean prosecutors have requested that an arrest warrant be issued for the individual.

According to a report by news outlet Dong-A Ilbo, the head of the joint financial and securities investigation team of the Seoul Southern District Prosecutor’s Office requested an arrest warrant on bribery charges against the former CEO of Tmon, known as “Mr. A”, as well as a person named “broker B”, who worked in lobbying in the financial sector in favor of Terra.

According to the allegations, Mr. A received LUNC tokens from Shin Hyun-Seong, who is also known as Daniel Shin, the co-founder of Terra. Shin urged Mr. A to actively promote Terra as a simple payment method. After this event, Tmon started promoting LUNC and spreading the word that the token is a reliable investment. The researchers believe that the hype was responsible for the growth of the token price, as it raised investor expectations.

The former CEO of Tmon is speculated to have profited billions of won from the sale of the LUNC tokens that were obtained in exchange for trading. Furthermore, the investigation emphasized that despite warnings from financial regulators, Shin has apparently contributed money to other companies such as Tmon to promote LUNC as a secure payment mechanism. This was one of the points that was underlined in the investigation.

On November 14, South Korean prosecutors made an official request for Shin to assist in the investigation of the Terra collapse. Police said Shin had been in possession of LUNC tokens without the knowledge of investors and had made illicit transactions totaling more than $105 million before the company’s collapse.

The prosecutors in charge of the case have been continually expanding the scope of their investigations and focusing their attention on additional individuals involved. On November 30, 2022, the South Korean authorities issued an arrest warrant for Shin, along with three investors in Terra and four engineers responsible for the project.