According to Foresight News, a recent statement submitted by the Financial Securities Crime Joint Investigation Department of the Southern Seoul Local Prosecutor's Office reveals that in a conversation between Do Kwon and Shin in May 2019, they discussed the possibility of creating seemingly real but fraudulent trades. The prosecutors believe that this indicates that Do Kwon and Shin had the intention to manipulate trades related to Terra from the beginning of their venture, with the aim of defrauding investors. They allegedly used these fraudulent trades to inflate trading volumes, thereby attracting investors and expanding their business.
In a previous report by Foresight News, it was revealed that Judge Jed Rakoff of the U.S. District Court in New York had approved a settlement agreement of $44.7 billion between Terraform and the U.S. Securities and Exchange Commission (SEC). As per the agreement, Terraform will pay nearly $36 billion in forfeiture, $4.2 billion in civil penalties, and an estimated $4.67 billion in interest. On the basis of cooperation with Terraform, Do Kwon agreed to pay $110 million in forfeiture, $14.3 million in pre-trial interest, and $80 million in civil penalties.
