Terra Co-Founder Daniel Shin Still Free After Twice Court Refused Arrest

Key Points:

• For the second time, the Korean Court, for the 2nd time, refused to arrest Terra co-founder Daniel Shin because he was not in danger of fleeing or destroying evidence during the investigation.
• The Terra co-founder is being investigated for alleged illegal profits before the company’s cryptocurrency collapsed last year.
• Shin has denied all allegations, saying he had no connection to Terraform Labs after he left the company in March 2020 to start a new company, Chai.

South Korean prosecutors’ request for an arrest warrant for Daniel Shin, co-founder of Terraform Labs, was denied by a local court for the second time, according to media Yonhap News.

A Seoul court on March 30 denied the arrest warrant for Daniel Shin, co-founder of Terraform Labs, who is being investigated for alleged illegal profits prior to the company’s cryptocurrency crash massively last year.

The Seoul Southern District Prosecutor’s Office requested an arrest warrant before Shin’s trial on Monday on fraud charges related to the most significant cryptocurrency crash in history, TerraUSD, and Luna, last May.

The Seoul Southern District Court denied the request, stating that there were still controversies regarding the charges against Shin and that he was incapable of risking absconding or destroying evidence, which is also why due given in the previous December rejection.

According to prosecutors, Daniel Shin faces charges including fraud, breach of duty, and violation of capital markets laws. He has denied the charges against him. His attorneys have previously said that he split from Terraform Labs in 2020 to form a new company, Chai, and has not been involved in its operations since.

The Terra blockchain project that Shin and Do Kwon developed exploded nearly a year ago when its associated stablecoin, TerraUSD, lost pegs against the dollar.

Currently, co-founder Do Kwon has been arrested for falsifying documents while on the run. US and South Korean prosecutors, who have accused Kwon of fraud and are seeking his extradition, say the collapse of TerraUSD and its sister token, Luna, has led investors to losses of about $40 billion.

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