Terra Luna incident, Shin Hyun-sung personally states his position in court

LidoStakeAddict · 2026-01-21T09:38:46+00:00

Shin Hyun-seong, former CEO of Chai Corporation, appeared in court denying allegations related to Luna and Terra. He emphasized a business separation from Do Kwon, asserting no involvement in Terraform Labs' decisions. His defense argued that cryptocurrencies are not classified as securities, highlighting the lack of past regulations in South Korea. Prosecutors charged him with multiple offenses, citing illicit gains totaling 4.629 trillion won.

LidoStakeAddict

2026-01-21 09:38:46

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Shin Hyun-sung, the former CEO of Chi Corporation who was indicted on charges related to Luna and Terra, recently appeared in court and strongly denied the allegations. According to Dailyan, Shin Hyun-sung clarified his position during the first trial by explicitly mentioning his business separation from Do Kwon, CEO of Terraform Labs.

Separation from Do Kwon Three Years Ago… Emphasizing Business Division

Shin Hyun-sung emphasized in court that he had separated his business from Do Kwon three years ago. This is interpreted as a strategy to highlight that he was distanced from key decision-making at Terraform Labs. Shin’s side continued to stress that the business separation between the two individuals is clear.

Defense Attorney Raises Issues of Virtual Asset Regulations

Shin Hyun-sung’s defense team argued in court that virtual assets themselves do not have the characteristics of securities. They also pointed out that there was no regulation in Korea in the past that prohibited virtual asset payment services, raising questions about legal responsibility. This indicates that Shin Hyun-sung operated his business legally within the existing regulatory framework at the time.

Prosecution Applies Charges of Unlawful Gains of 462.9 Billion Won

Meanwhile, the prosecution has applied multiple charges against Shin Hyun-sung and other defendants, including fraud, breach of trust, embezzlement, breach of fiduciary duty, and occupational breach of trust. Additionally, violations of the Capital Markets Act, Electronic Financial Transactions Act, and Specific Financial Information Act are also being applied. The prosecution believes that the defendants, including Shin Hyun-sung, gained a total of 462.9 billion won in unjust profits and is proceeding with prosecution based on this.

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