On Friday, Daniel Shin, one of the co-founders of Terraform, testified before a judge in a South Korean court during a hearing to determine whether or not he should be jailed for allegedly obtaining profits illegally. However, the judge decided not to go through with the arrest warrant.
Shin is accused, according to Yonhap news, of selling a horde of Terra’s LUNA tokens worth $105 million at the highest price of cryptocurrency. The regular investors were unaware that the tokens had already been issued when they made their investments.
After Shin’s resignation from Doe in March 2020, he went on to create Chai, during which time he denied having any connections to Terraform Labs.
According to the judge’s statement, “Considering the attitude toward the inquiry, the circumstances, the procedure, and the substance of the statement, it is difficult to perceive that there is a danger of destroying evidence or escaping beyond the boundaries of exercising the right to reasonable defense.”
Additionally, the prosecutors have requested arrest warrants for three other Terraform Labs investors as well as four engineers. Terraform Labs has also been under investigation for tax evasion & possible fraud. Do Kwon was even the subject of a red alert issued by Interpol.
Compiled by Coinbold