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South Korean prosecutors have asked a court to issue an arrest warrant Terraform Labs Co-founder Daniel Shin (Korean name Shin Hyun-seong) – as well as a group of “early” Terra ecosystem “investors”.
Multiple media outlets including national broadcaster kbs, said the Seoul Southern District Prosecutor’s Office has asked a court in the South Korean capital to issue arrest warrants for “a total of eight people, including four early investors”. Shin was identified as belonging to this group.
The remainder were described as “four key individuals” involved in the Terra ecosystem “technology development”. Shin, like his estranged Terraform co-founder Do Kwon, was previously heralded as a budding tech pioneer. He has founded fast-growing tech firms such as payments company Chai Corporation.
Media outlets claimed that prosecutors suspect Shin and seven others of “violating the Capital Markets Act”. [Terra Luna Classic] cryptoset.”
The coin, formerly known as LUNA (now LUNC), fell to a record low in early May. But suspicion fell on the executives of TerraForm – which closed its South Korean businesses and moved overseas shortly before the crash.
Prosecutors have also accused the group of violating crypto-specific laws as well as anti-fraud laws and the Electronic Financial Transactions Act. They believe that Shin may have made an “unfair profit” of approximately $107 million by selling his LUNC holdings when the coin’s value increased.
He is also allegedly accused of “using customer information held by Chai” to promote Terra Ecosystem coins.
Daniel Shin speaks out after prosecutors take action
Shin’s legal team released a statement after hearing of the prosecution’s decision. Shin claimed that he “left the company two years ago and had nothing to do with the collapse of Terra Coins”.
His team said Shin “deeply regrets the prosecution’s request for an arrest warrant.” Prosecutors have been investigating Shin since shortly after his collapse. their house was Raid in July. Prosecuting officers had also searched the offices of the Tea Corporation earlier this month.
Shin was also called in for questioning on November 17, and was previously “investigated into suspected violations” of the Capital Markets Act and issues related to breach of trust,” KBS noted.
Earlier this week, a top financial regulator said it had given a “warning” Shin and Kwon would not launch Terraform back in 2018, but claimed its concerns were “overlooked”.
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