Prosecutors in South Korea are reportedly seeking a warrant for the arrest of a Terraform Labs’ co-founder along with seven others as part of an investigation of the infamous crash of the Terra (LUNA) ecosystem.
South Korean news agency Yonhap reports that prosecutors investigating the case are asking the Seoul Southern District Prosecutors Office to issue an arrest warrant for Terraform Labs co-founder Shin Hyun-seong, also known as Daniel Shin.
Shin allegedly kept LUNA tokens that were pre-issued without notifying regular investors and pocketed illegal profits worth 140 billion won (roughly $105 million) by selling these tokens at a higher price.
Shin, who is also the CEO and founder of the payments platform Chai Corporation, is also facing charges for violating the Electronic Financial Transaction Act for allegedly leaking the firm’s customer information to Terra.
Shin says he is no longer tied to Terraform Labs.
“I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse.”
The report says that warrants are also being sought for three Terraform Labs investors and four engineers of LUNA and algorithmic stablecoin TerraUSD (UST).
The request comes as Terra co-founder and CEO Do Kwon remains at large. Kwon has admitted that he is at fault for the meltdown of LUNA and UST, but his whereabouts are still unknown.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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