• South Korean prosecutors are attempting to arrest Terraform Labs co-founder Daniel Shin on charges of fraud, illegal fundraising and violating capital market laws.
• Previous attempts to arrest him were unsuccessful as a court refused to grant an arrest warrant due to lack of evidence of flight risk.
• Following the confirmation of Do Kwon’s arrest in Montenegro while trying to fly to Dubai, an effort has been made to re-arrest Shin with new evidence.
South Korea Seeks Arrest of Terraform Labs Co-Founder
South Korean prosecutors are renewing their efforts to arrest Terraform Labs (TFL) co-founder Daniel Shin following the confirmed arrest of Do Kwon in Montenegro while attempting to flee to Dubai.
Previous Attempt Failed
The Seoul Southern District Prosecutors‘ Office is trying once more after their previous attempt failed when a South Korean court refused to grant an arrest warrant due to lack of evidence that Shin constituted a flight risk.
Accusations Against Shin
Shin is accused of fraud, illegal fundraising and violation of capital market laws. His lawyers argued that he had cut ties with Terraform Labs in 2020 and sold 70% of his Luna holdings before the price increase.
Terra tokens down
The renewed effort against Shin has caused Terra-related tokens such as Luna (LUNA) and Classic (LUNC) have seen prices fall drastically. According the CryptoSlate data LUNA is down 11% over the last seven days and by roughly 30% in the past month.
The U.S Securities and Exchange Commission (SEC) have classified these tokens as unregistered securities in a February court filing.