New About Terraform Labs Founder: Prosecutors Take Action!

prosecutors in South Korea. Terraform Labs co-founder Daniel Shin They reportedly asked for an arrest warrant.

Prosecutors Request Arrest Warrant for Terraform Labs Co-Founder Daniel Shin

The Seoul Southern District Procuratorate’s Office said Wednesday that Shin has sought an arrest warrant from Terra, the blockchain ecosystem overseen by Terraform Labs, for allegedly making illegal profits prior to its massive collapse in May, Yonhap News Agency reported.

The same authorities also reportedly raided the offices of Chai Corporation, a payment technology company founded by Shin, earlier this month.

Authorities in South Korea had previously issued an arrest warrant for CEO Do Kwon, Shin’s co-founder at Terraform Labs, and asked Interpol to issue a red notice for Kwon’s arrest.

This happened despite Kwon claiming that he did not escape.

According to Yonhap’s report, the Seoul Southern District Procuratorate’s Office also issued arrest warrants for three other investors and four engineers of Terraform Labs.

In the report, it was stated that prosecutors believe Shin has made an illegal profit of 140 billion won (approximately $105 million) from the sale of Terra’s native token, LUNA.

Shin is accused of violating the Electronic Financial Transactions Act.

Shin left Terraform Labs in March 2020 to focus on Fintech firm Chai.

However, Shin said in a written statement to Yonhap that he left Terraform Labs two years before the crisis that gripped Terra and its tokens in May and had “nothing to do with the collapse.”

*Not investment advice.