Binance Under Pressure to Freeze Terra Co-Founder Daniel Shin's Funds After Prosecution Request

Terra is a blockchain platform that aims to create a stable and scalable global payment system powered by its native cryptocurrency, Luna. Terra was co-founded by Daniel Shin, a former CEO of Ticket Monster, one of South Korea’s largest e-commerce platforms.

However, Shin is now facing legal troubles in his home country, as he has been accused of embezzling funds from Ticket Monster and using them to invest in Terra and other crypto projects.

According to a report by The Korea Times, the Seoul Central District Prosecutors’ Office has requested Binance, the world’s largest crypto exchange, to freeze Shin’s accounts on its platform.

What are the allegations against Shin?

The prosecutors allege that Shin embezzled about 400 billion won ($340 million) from Ticket Monster between 2015 and 2019 when he was the company’s CEO. They claim that he used the funds to buy Luna tokens and other cryptocurrencies and finance Terra and its affiliates.

Shin denied the allegations, saying that he did not embezzle any money from Ticket Monster and invested his own personal funds in Terra and other crypto projects. He also said that he resigned from Ticket Monster in 2019 to focus on Terra and has no involvement in the company’s management or operations.

Will Binance comply with the prosecution request?

Binance has not officially commented on the prosecution request, but it will likely comply with it, as it has done so in the past with similar requests from law enforcement agencies around the world. Binance has a policy of cooperating with authorities to prevent money laundering, fraud, and other illegal activities on its platform.

However, some experts have raised concerns about the legality and validity of the prosecution request, as it may violate Shin’s privacy and property rights. They argue that the prosecutors have not provided sufficient evidence or grounds to justify freezing Shin’s accounts and that they may be overstepping their jurisdiction by requesting a foreign entity to comply with their demands.

What are the implications for Terra and Luna?

Terra and Luna have not been directly affected by the prosecution request, as they operate on a decentralized network independent of Binance or any other centralized entity.

However, the news may negatively impact the credibility of Terra and its co-founder and the confidence and sentiment of Luna holders and investors.

Terra has been one of the most successful and innovative blockchain platforms in recent years, offering various services and products such as stablecoins, payments, savings, lending, synthetic assets, and Oracle solutions.

Luna is the governance token of Terra, which also acts as collateral for issuing stablecoins and as a staking asset for securing the network. Luna has seen remarkable growth in its price and market capitalization in 2021, reaching an all-time high of $49.69 on September 21.

However, its legal troubles of Shin may cast a shadow over Terra’s prospects and potential partnerships. It remains to be seen how Shin will defend himself against the allegations and how Binance will respond to the prosecution’s request.

In the meantime, Terra and Luna users and supporters may have to brace themselves for more volatility and uncertainty in the crypto market.