Seoul Court Rejects Terraform Labs Co-Founder's Detention Request
A recent development in Seoul has seen the court decline a request for an arrest warrant targeting Daniel Shin, Terraform Labs' co-founder, who is currently under scrutiny for purportedly securing illegal profits before the company's cryptocurrencies, TerraUSD and Luna, experienced a dramatic decline last year.
The pretrial warrant application to detain Shin was lodged on Monday, alleging his involvement in fraudulent activities connected to the substantial devaluation of TerraUSD and Luna. Despite this, the Seoul Southern District Court rejected the application, highlighting that the allegations against Shin continue to be debated and that he poses neither a flight risk nor a danger of tampering with evidence.
This marks the second time prosecutors have pursued an arrest warrant for Shin, with a previous attempt in November also being rebuffed by the court.
In the wake of Do Kwon's arrest in Montenegro last week, the prosecution renewed its warrant request. Extradition of Kwon is now being sought by the prosecution.
Shin is confronted with an array of charges, including fraud, breach of duty, and transgressions of laws related to capital markets, electronic financial transactions, and financial information.
Prosecutors maintain that Shin accumulated pre-issued Luna tokens without disclosing this to regular investors, ultimately obtaining illicit gains of around 140 billion won (approximately $107.7 million) by offloading the tokens at their highest value.
Additionally, Shin is accused of failing to properly inform investors of the potential risks associated with the cryptocurrencies' collapse in value.
Prosecutors also argue that customer information and funds from Chai Corp., a fintech firm previously under Shin's leadership, were employed to bolster Luna's promotion.
Shin has consistently denied all accusations, asserting that he has no connection to Terraform Labs since leaving the company in March 2020 to launch Chai.
This marks the second time prosecutors have pursued an arrest warrant for Shin, with a previous attempt in November also being rebuffed by the court.
In the wake of Do Kwon's arrest in Montenegro last week, the prosecution renewed its warrant request. Extradition of Kwon is now being sought by the prosecution.
Shin is confronted with an array of charges, including fraud, breach of duty, and transgressions of laws related to capital markets, electronic financial transactions, and financial information.
Prosecutors maintain that Shin accumulated pre-issued Luna tokens without disclosing this to regular investors, ultimately obtaining illicit gains of around 140 billion won (approximately $107.7 million) by offloading the tokens at their highest value.
Additionally, Shin is accused of failing to properly inform investors of the potential risks associated with the cryptocurrencies' collapse in value.
Prosecutors also argue that customer information and funds from Chai Corp., a fintech firm previously under Shin's leadership, were employed to bolster Luna's promotion.
Shin has consistently denied all accusations, asserting that he has no connection to Terraform Labs since leaving the company in March 2020 to launch Chai.
