The Seoul Southern District Prosecutor’s Office has issued arrest warrants for the co-founder of Terraform Labs, as well as several employees and investors of the company, who are suspected of making illegal profits.
Daniel Shin owned LUNA crypto assets, which were pre-released without the knowledge of investors, law enforcement assures. Shin is suspected of selling LUNA during the cryptocurrency bull market and making a profit of 140 billion won (about $105 million), which contributed to the collapse of the Terra ecosystem. Arrest warrants have also been issued for four Terraform Labs engineers and three investors in LUNA and the UST stablecoin who promoted these digital assets.
In mid-November, the South Korean authorities involved Shin in the investigation and confiscated the funds earned from the sale of crypto assets from him. This withdrawal will reduce the risk of further losses for investors if Shin decides to get rid of the funds, security officials say. Sheen’s lawyer argues that such allegations are untrue. Sheen denies any involvement in the collapse of Project Terra, as he says he left Terraform Labs two years prior to the incident.
The South Korean prosecutor’s office said there is evidence that project team leader Do Kwon manipulated the price of Luna Classic (LUNC). However, Terraform Labs lawyers claim that Korean prosecutors are trying to distort the local Capital Markets Law and make unfounded claims.
The founder of the project, Do Kwon, himself claims that he is not hiding from the South Korean authorities. In October, 4,400 retail investors in UST banded together to find him.
Source: Bits
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