South Korea Targets Terra Co-Founder After Do-Kwon’s Arrest

Sahana Kiran
Source – Coindesk

The Terra crash took place months ago, yet it continues to remain a hot topic of discussion. However, the latest news around the arrest of Terraform Labs founder Do Kwon, has been a comprehensive action taken by the law. Now, Daniel Shin, Co-founder of Terra might be next in line. Earlier today, the prosecutors’ office in Seoul acknowledged the decision to apprehend Shin. The arrest comes hot on the heels of the other founder Do Kwon, who was brought in last week, in Montenegro.

It should be noted that this isn’t the first time that South Korean prosecutors were trying to arrest Shin. Back in December 2022, officials were looking to charge Daniel Shin and the others with fraud, under the Capital Markets Act and the Electronic Financial Transactions Act, and breach of duty.

According to the prosecution, Shin promoted the Terra stablecoin [TerraUSD] as a payment option despite repeated warnings from regulators. Additionally, he reportedly made illegal profits of over 140 billion Korean won [US$106 million] through the Luna cryptocurrency. This wasn’t all. He was also accused of misusing Chai Corporation users’ private information to promote Terra-Luna.

Shin previously stated through his attorneys that he left Terraform Labs in 2020 and hasn’t been involved in the company’s activities in the past couple of years. In December, a South Korean court denied prosecutors’ request for an arrest order for the man. The court suggested that it was impossible to imagine he would flee or would tamper with evidence. However, the situation may undoubtedly change, now that Kwon remains in police custody.

Which country will Terra founder Do Kwon be sent to?

Following his arrest in Montenegro last week, the U.S., as well as South Korea, were seeking Kwon’s extradition. Currently, Kwon faces eight criminal indictments in the U.S. Kwon has been charged with forgery in Montenegro as of now. As the extradition process is underway, the community was glad that the Terra founder is behind bars.