South Korean prosecutors claim that Terraform Labs co-founder Daniel Shin secured $105 million of illegal profits.
The Seoul Southern District Prosecutors Office in South Korea has issued an arrest warrant for Terraform Labs co-founder Daniel Shin, three investors, and four engineers.
According to the Yonhap News Agency news report, prosecutors claim that Terraform Labs' co-founder and other individuals gained illegal profits before the collapse of TerraUSD (UST) and Terra (LUNA).
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South Korean prosecutors suspect that Daniel Shin held a significant amount of Terra (LUNA), which he sold at the highest price point and bagged a profit of 140 billion won (around $105 million).
On top of that, Terraform Labs co-founder is also charged with violating the Electronic Financial Transaction Act, claiming that his company Chin, used its funds and customer information to promote Terra (LUNA).
Before issuing an arrest warrant, on November 19th, South Korean prosecutors seized around $104 million worth of assets from Shin. Terraforms co-founder’s attorney stated that allegations that Shin “sold Luna at a high point and realized profits or that he made profits through other illegal methods are not true.”
On top of that, in a separate written announcement, Daniel Shin stated:
I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse.
The arrest warrant from South Korean prosecutors comes after months of trying to arrest Terraform Labs co-founder and CEO Do Kwon. On September 14th, South Korea issued an arrest warrant for Do Kwon and five other associates for allegedly violating the country’s capital markets law.
On September 19th, the news broke that the Seoul Southern District prosecutors’ office aims to receive help from Interpol by placing Kwon on the Red Notice list. On September 26th, Interpol issued a Red Notice to find and arrest Do Kwon.
Meanwhile, Do Kwon was using Twitter to communicate with the community and his fans, claiming that he was “not on the run” and was allegedly writing a code in his living room.
