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Korea Prosecutors Seeking Arrest Order Terraform Labs’ Co-founder Daniel Shin

Korea Prosecutors Seeking Arrest Order Terraform Labs' Co-founder Daniel Shin

According to Yonhap News Agency, the Seoul Southern District Prosecutors Office said Wednesday that it is seeking an arrest warrant for Daniel Shin, the Terraform Labs co-founder, for allegedly taking illegal profits from Terra, the blockchain ecosystem overseen by Terraform Labs, before its spectacular collapse in May.

Earlier last month, the same officials reportedly raided the headquarters of Chai Corporation, a payments technology firm established by Shin.

Prosecutors accused Shin of breaching the Electronic Financial Transaction Act by allegedly using the client information and finances of fintech startup Chai Corp. to promote LUNA.

According to Yonhap, the Seoul Southern District Prosecutors Office has obtained warrants for three additional Terraform Labs investors and four engineers. Prosecutors think Shin obtained illicit gains of 140 billion won (about $105 million) through sales of LUNA, Terra’s native token, according to the newspaper.

Shin, meanwhile, denied any links to Terraform Labs until his departure from Do Kwon in March 2020, when he founded Chai. Shin resigned as Chai’s CEO earlier this year.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.