Shin Hyun-sung directly refutes charges related to Terra and Luna in court

MevTears · 2026-01-28T02:09:51+00:00

Shin Hyun-seong, former CEO of Chai Corporation, strongly opposed the charges against him in his first court appearance related to the Terra-Luna case. His defense argued that he has been independent from Terraform Labs' Do Kwon for three years and that the legal basis for the accusations is weak. They asserted that cryptocurrencies do not qualify as traditional securities and noted the lack of regulations explicitly prohibiting cryptocurrency-based payment services in South Korea. The prosecution, however, has leveled multiple serious charges, including fraud and breach of trust, alleging Shin and others gained illicit profits totaling 4.629 billion won. The outcome of Shin's legal strategy remains a focal point for both the industry and the legal community.

MevTears

2026-01-28 02:09:51

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Chai Corporation’s former CEO Shin Hyun-sung, who was indicted as a defendant in the Terra·Luna-related case, appeared at the first trial on the 30th and strongly opposed the prosecution’s allegations. Shin Hyun-sung’s legal team emphasized that their client has been distanced from Terraform Labs CEO Do Kwon in business for over three years, and argued that the charges lack sufficient legal grounds.

Shin Hyun-sung’s Legal Arguments and Counterpoints

Shin Hyun-sung’s attorneys stated in court that virtual assets do not have the traditional characteristics of securities. They also pointed out that, under the Korean regulatory environment at the time, there were no explicit regulations prohibiting payment services based on virtual assets. This is interpreted as a defensive strategy to lower the likelihood that Shin Hyun-sung committed legal violations at that time.

Emphasis on Business Separation from Do Kwon

A key point Shin Hyun-sung emphasizes is the disconnection from Do Kwon and Terraform Labs. In court, he repeatedly mentioned that he had already achieved business independence from Do Kwon three years ago. This appears to be a strategy to separate Shin Hyun-sung from responsibility for the Terra collapse incident.

Prosecutors’ Strong Allegations

The prosecution applied multiple charges against the defendants, including Shin Hyun-sung. These range from fraud, breach of trust, embezzlement, to violations of the Capital Markets Act, Electronic Financial Transactions Act, and the Specific Financial Information Act. The prosecution estimates that the defendants, including Shin Hyun-sung, gained approximately 462.9 billion won through illegal gains, which is a core part of the charges.

Industry and legal circles are closely watching how Shin Hyun-sung’s courtroom response will influence the outcome of this trial.

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