South Korean authorities have expanded investigations to locate Terraform Labs executives after the company’s chief executive Do Kwon disappeared in hiding, reports revealed this week.
National prosecutors have issued an arrest warrant for eight of Terra’s key executives, including company co-founder Daniel Shin, investors, and engineers. The warrant accuses the group of illegally profiting from the Terra collapse in early May.
Yonhap News Agency also noted four Terraform engineers and three investors had received arrest warrants for their role in TerraUSD (UST) and LUNA. Authorities also seized over $104 million in assets from Shin after authorities suspected him of earning profits illegally.
What Are the Charges, Officers?
According to the Seoul Southern District Prosecutors Office, Shin owned Terra LUNA tokens without public investor knowledge, gaining him roughly $105 million (140 billion Korean Won) in profits.
Prosecutors explained Shin earned the pre-issued tokens amid the former bull market. He was also charged with violating the Electronic Financial Transaction Act after using customer funding and information from Chai Corp, a fintech company, to promote his cryptocurrency.
Shin’s attorney said in a public statement: “Reports that CEO Shin Hyun-seong sold LUNA at a high point and realized profits or that he made profits through other illegal methods are not true.”
Speaking against the arrest warrant, Shin pointed out: “I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse.”
The news comes after Binance chief executive Changpeng Zhao (CZ) commented that people should reduce LUNA holdings with burns and abandon those attempting to rescue the coin.
He concluded “I don’t own any LUNA or UST either. Just commenting.”
