Terraform Labs co-founder left cryptocurrency firm 2 years before crash

SEOUL, 30 Nov 2022:

South Korean prosecutors today said they sought an arrest warrant for Daniel Shin, a Terraform Labs co-founder, over the collapse of the blockchain firm’s cryptocurrencies.

The Seoul prosecutors alleged that Shin amassed illegal monetary benefits before his cryptocurrencies – the TerraUSD and Luna – crashed.

The prosecution has also sought arrest warrants for three other investors of the blockchain company that developed Luna and TerraUSD.

Prosecutors believe Shin stockpiled Luna, issued early without notifying other investors.

He made about 140 billion won (about US$106 million) by selling the tokens during the peak demand, said the official Yonhap news agency, citing officials.

Shin, 37, has denied that he had anything to do with the Terraform Labs cyber currency crash.

He said the cryptocurrencies collapsed two years after he had left the company in March 2020.

Terraform Labs has been under investigation since May for alleged fraud and tax evasion when different people who invested in the two currencies denounced another co-founder, Do Kwon, also a South Korean.

The prosecutor’s office obtained arrest warrants in September for Do and another Terraform Labs co-founder, Nicholas Platias from Greece, as well as four other people in connection with the collapse of Luna and TerraUSD.

The six, who remain untraceable, are believed to be in Singapore.

Interpol has issued a red corner notice for their arrest at the request of the South Korean authorities.