Prosecutors in South Korea issued an arrest warrant for Do Kwon’s colleague and Terra co-founder Daniel Shin on suspicion of illegal profiteering prior to the catastrophic collapse of the Terra ecosystem.
Arrest warrants were also issued for three Terraform Labs investors and four engineers in charge of the TerraUSD (UST) and LUNA projects, according to local news agency Yonhap.
Terra co-founder Daniel Shin faces charges in South Korea
The Seoul Southern District Prosecutors Office in South Korea suspected Shin of possessing LUNA tokens, which were pre-issued without investors’ consent. Shin allegedly profited 140 billion won (around $105 million) by selling the pre-issued tokens during the bull market.
Shin’s assets worth more than $104 million were seized by South Korean authorities on November 19 under the same allegation of amassing illicit profits.
Resistance
Shin, speaking out against the arrest warrant, stated that he left the company two years before Terra and Luna’s demise and had “nothing to do with the collapse.”
Meanwhile, Kwon insists he is not evading South Korean police. On Oct. 6, South Korea’s Ministry of Foreign Affairs ordered Kwon to return his passport, which if he resists will result in permanent cancellation. The deadline set for the surrender has since expired.