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South Korea wants Terraform labs co-founder arrested
Previous attempts to arrest the Terra co-founder Daniel Shin failed because a South Korean court refused to grant the arrest warrant.
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Updated: Jul. 21, 2023 at 3:07 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
South Korean prosecutors are renewing efforts to arrest Terraform Labs (TFL) co-founder Daniel Shin, Bloomberg reported on March 27.
The Seoul Southern District Prosecutors’ Office confirmed that it is trying to arrest the entrepreneur after its first attempt failed. The prosecutors accuse Shin of fraud, illegal fundraising, and violation of capital market laws.
Previous attempts to arrest Shin in 2022 were frustrated after a South Korean court refused to grant the arrest warrant. The court held that Shin did constitute a flight risk.
Shin’s lawyers argued that he had cut ties with Terraform Labs in 2020. He also claimed that he had sold 70% of his Luna holdings before the price increase and still held some tokens even at the time of the collapse.
Meanwhile, the renewed effort to arrest Shin is due to the confirmed arrest of Do Kwon in Montenegro while trying to fly to Dubai. The U.S. and South Korea are both seeking to extradite Kwon to answer cases of fraud and other offenses.
Terra tokens down
Terra-related tokens have seen their values fall rapidly following Do Kwon’s arrest.
According to CryptoSlate data, Terra LUNA is down 2% in the last 24 hours to $1.29. The token has fallen by 11% over the last seven days and by roughly 30% in the past month.
Meanwhile, Terra Classic (LUNC) declined 0.72% to $0.00012. The token is 100% below its all-time high of $119.48.
Meanwhile, the United Securities and Exchange Commission (SEC) classified these tokens as unregistered securities in a February court filing.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.