Daniel Shin, Co-Founder of Terraform Labs, was spared from arrest after a Seoul court refused the warrant on March 30th. This petition arose from allegations of fraud connected to the huge cryptocurrency crash of the TerraUSD and Luna tokens last May. The court decided to reject the request upon examination of the controversy surrounding the charges and Shin’s incapability of evading investigation or destroying evidence—the main reasons for the previous denial in December.

The prosecutors in question brought fraud and breach of duty charges alongside regulations on capital markets’ violations against Shin. While he denies these charges, his lawyers appear to implicate that Shin left the Terraform Labs in 2020 to found the Chai company, having nothing to do with its activities since.

The Terra blockchain platform founded by Shin and Do Kwon was badly damaged in April of 2020 due to the abrupt unstabilization of their corresponding TerraUSD and Luna stablecoins. With Kwon currently detained for allegedly falsifying records while fleeing the country, the US and South Korean prosecutors claim the TerraUSD and Luna crash has cost investors over $40 billion.

It is important to note that the information presented on this article is solely intended to educate and inform readers of the developments within the crypto market, and is not promotional in any form. As always, we advise all investors to use caution and research thoroughly before making investments of any kind.



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