An arrest warrant has reportedly been issued for Terraform Labs co-founder Daniel Shin.
The collapse of Terra’s algorithmic UST stablecoin and its sister LUNA cryptocurrency, once one of the most widely used cryptocurrencies especially in the decentralized finance community, affected hundreds of thousands of investors worldwide and had an industry-wide impact. South Korean authorities have been after Do Kwon and other Terra associates since Terra collapsed in May.
According to media reports, the Terraform Labs co-founder is accused of making illegal profits and violating the Electronic Financial Transactions Act.
Arrest Warrant for Co-Founder of Terraform Labs
South Korean news service Yonhap reports that prosecutors have sought an arrest warrant for Terraform Labs co-founder Daniel Shin.
Yonhap says prosecutors are accusing Shin of making illegal profits for selling $105 million of LUNA at the highest level of the market without informing investors. He is also accused of violating the Electronic Financial Transactions Act for using customer data from Chai, a separate firm he manages, to promote Luna.
For these reasons, South Korea recently approved the request for an asset freeze of $ 104 million belonging to Daniel Shin.
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