Terra co-founder sought arrest
South Korean authorities are intensifying efforts to track down and arrest Shin Hyun-Seong, also known as Daniel Shin, co-founder of cryptocurrency platform Terra. This follows the recent arrest of his co-founder, Do Kwon, who was arrested in Montenegro while attempting to board a flight using false travel documents.
Authorities have suspected the involvement of a number of Terra associates in promoting volatile investment opportunities with Terra (LUNA) and TerraUSD (UST) tokens since November 2022. However, with Kwon’s arrest on March 23, 2023, they are now making another attempt at Shin’s arrest, according to a Bloomberg report. Prosecutors are said to be conducting a new push to arrest Shin, but no official announcement has been made in this regard.
Authorities previously alleged that Shin made approximately $105 million in profits from the illegal sale of LUNA tokens prior to Terra’s collapse. However, Shin claims to have had no involvement with Terra after January 2020, as evidenced by his LinkedIn profile. Nevertheless, an arrest warrant has been sought for Shin, along with three investors and four engineers, on charges of fraud, breach of duty, breach of the Capital Markets Act and illegal fundraising.
Meanwhile, Kwon remains detained in Montenegro after being caught with false travel documents. While his legal representative claims that the use of false documents was not intended, the Montenegrin court approved the extension of Kwon’s detention by 30 days at the request of the authorities. Kwon’s identity was not clearly identified and he is considered a foreign national.
Founded in 2018, Terra is a blockchain-based platform that enables users to trade stablecoins backed by fiat currencies. The platform’s main token, LUNA, has seen significant growth in recent years, with a market capitalization of over $20 billion as of March 2023. However, the platform has also been subject to controversy, with allegations of insider trading and market manipulation.
The case against Terra’s co-founders and colleagues underscores the risks and challenges associated with investing in cryptocurrencies and other digital assets. As the market continues to evolve and attract greater scrutiny from regulators and law enforcement agencies, investors must exercise caution and due diligence to protect their interests.
