(ATTN: ADDS listening to schedule in final para)
By Kim Han-joo
SEOUL, Nov. 30 (Yonhap) — Prosecutors mentioned Wednesday they’ve sought an arrest warrant for Daniel Shin, co-founder of Terraform Labs, for allegedly gaining unlawful earnings earlier than the huge collapse of the blockchain agency’s cryptocurrencies.
The Seoul Southern District Prosecutors Workplace mentioned the warrants have been additionally sought for 3 different Terraform Labs traders and 4 engineers of the agency’s cryptocurrencies — TerraUSD and Luna.
Terraform Labs has been underneath investigation for alleged fraud and tax evasion after traders filed complaints towards Do Kwon, one other co-CEO, in Might. An Interpol purple discover has been issued for Do, whose whereabouts continues to be unknown.
Prosecutors suspect 37-year-old Shin saved Luna — which had been pre-issued with out notifying common traders — and pocketed unlawful earnings price 140 billion received (US$105 million) by promoting the tokens at a excessive level.
Whereas there’s at present no authorized clause on stablecoins and bitcoins underneath the Capital Markets Act, prosecutors mentioned they view Luna cryptocurrency as a monetary funding safety.
Costs towards Shin additionally embody violating the Digital Monetary Transaction Act, because the buyer info and funds of fintech agency Chai Corp. have been allegedly used to advertise Luna, prosecutors mentioned.
Shin, in the meantime, as soon as once more refuted any ties with Terraform Labs following his departure from Do in March 2020, when he moved on to discovered Chai. Shin stepped down as CEO of Chai earlier this 12 months.
“I left (Terraform Labs) two years earlier than the collapse of Terra and Luna, and don’t have anything to do with the collapse,” Shin mentioned in a written assertion, expressing robust remorse towards the prosecution for searching for a warrant regardless of his cooperation with the investigation.
A court docket is ready to carry a listening to Friday morning for a authorized overview of Shin’s detention, with the choice anticipated late Friday or early Saturday, officers mentioned.
