South Korean Prosecutors Are After Terra’s Co-Founder For Selling LUNA Worth More Over $105 Million

Daniel Shin, the co-founder of Terraform Labs appeared before the South Korean court on Friday about the Terra Network matter.

It was to be decided whether Shin should be arrested or not over the allegations of extracting profits from the Terra ecosystem prior to the network’s crash.

According to the prosecutors, it was a completely illegal act from the Terra co-founder. It is a crime to extract the profits from a platform prior to its crash leaving nothing behind for the investors.

Allegations against Daniel Shin

Shin is currently being prosecuted at the South Korean court for allegations of selling a huge quantity of Terra (LUNA). These tokens were sold when they were at their peak prices.

The money generated from the sales of the huge quantity of LUNA tokens accounted for more than $105 million. It has been claimed by the prosecutors that the tokens were used without the knowledge of the users.

The investors were not informed that these many tokens were being issued and they had been sold to generate a huge profit them.

With Shin appearing before the court, it is the final call of the judge where he issues an order to arrest the Terra co-founder or not.

Given the scale of his crime, people are expecting that the judge will show no leniency towards Shina and sentence him to prison.

Shin’s Statement

In his statement, Shin claimed that the tokens that were in his possession were sold prior to the LUNA token hitting its peak price.

Therefore, there is no connection between that so the proceeds were not as high as being claimed. He clarified that over 70% of the total LUNA tokens he sold were not at the highest price.

He claimed that at the time when the crash took place, he still had a tremendous amount of tokens available for LUNA. If he were to have an idea about the crash, he would have sold his entire LUNA holding.

He claims that it was not the case and he had a tremendous amount of LUNA left even when the network crashed.

Warrants against Other Terra Operatives

Daniel Shin is not the only person wanted by the South Korean prosecutors over the Terra crash matter. They are also after many other executives and operatives they consider to be involved in the crime.

The prosecutors have named multiple engineers from the Terraform Labs as well as early investors. As per the reports, the prosecutors have also had warrants issued in the names of the 7 early investors of the protocol.

One of the local media sources has claimed that one of the Terraform Labs engineers was part of Kernel Labs. It is a company that was formed by the former developers of the Terra network.

Do Kwon is wanted as well

Apart from Daniel Shin, the prosecutors are eager to get their hands on the other founder of the Terra network, Do Kwon.

To be precise, Do Kwon is currently the most wanted person by South Korean prosecutors when it comes to the Terra crash case.

It was back in September when the South Korean authorities issued an arrest warrant against Kwon. However, Do Kwon had already left the country by then and he has not turned himself in before the authorities.

The South Korean prosecutors have even gotten Interpol involved in the matter as they are trying to get to Do Kwon and extradite him.

Allegation by the Prosecutors

The South Korean prosecutors have alleged that Do Kwon and the rest of the executives at the Terraform Labs knew about the crash.

They had an idea that it would happen, bringing down the entire Terra ecosystem and resulting in losses worth several billion.

Therefore, they did the necessary things to ensure they had enough money on them before they could crash the network. However, South Korean investors haven’t taken this matter lightly.

They ended up filing a lawsuit against Terraform Labs and since then, the South Korean prosecutors are after the Terra executives.

Leave a Reply

Your email address will not be published.