- Shin had his arrest warrant dismissed for a second time.
- South Korean authorities have accused Daniel Shin of defrauding investors.
The Prosecutor’s Office had asked the Seoul Southern District Court to detain Shin Hyun-seung, a co-founder of the defunct firm Terraform Labs, in pre-trial custody, but the court denied the motion. According to reports, he was instrumental in the downfall of the firm’s crypto assets, including Luna and the stablecoin TerraUSD.
The court first denied the prosecution’s request for an arrest warrant against Shin back in November. With the arrest of Do Kwon (Kwon Do-Hyung), another Terraform founder, last week, the warrant was resubmitted.
No Flight Risk or Evidence Destroyer
Local media agencies said on Thursday that Shin had his arrest warrant dismissed for a second time. This is because he is not considered a flight risk or evidence destroyer. Shin is being looked into for allegedly unlawful earnings earned just before the market fell last year.
Kwon was stopped in Montenegro on his way to Dubai airport. The process of obtaining his extradition by South Korean authorities is anticipated to be lengthy. The justice minister of Montenegro and his counsel have confirmed that he will be tried there for using a fraudulent Costa Rican passport.
South Korean authorities have accused Daniel Shin of defrauding investors and breaking information and capital market regulations. He is accused of hoarding pre-issued Luna tokens. Making 140 billion won (almost $108 million) from the token sales. And neglecting to warn investors about the potential for a collapse in the value of both cryptocurrencies.
Shin is also accused of exploiting the resources of Chai Corp., the financial company he founded and led, to spread the Luna token. He claims he had nothing to do with Terraform Labs after departing in March 2020 and starting Chai Company, which he says he did.
