South Korean authorities have reportedly stepped up their efforts to arrest the co-founder of Terra Labs, Shin Hyun-Seong, also known as Daniel Shin. This move comes after the recent arrest of Do Kwon, the other co-founder of the company, who was caught using fake travel documents in Montenegro.
Translation from Montenegro Minister of Interior Filip Adzic – “ONE OF THE WORLD'S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA
Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon…” https://t.co/sCJ0FFrlEk
— Simon Dixon (@SimonDixonTwitt) March 23, 2023
The authorities suspect the involvement of numerous Terra colleagues in promoting unstable and uncertain investment opportunities with Terra (LUNA) and TerraUSD (UST) tokens. The prosecutors have alleged that Shin earned roughly $105 million in profits from illegal sales of LUNA tokens before Terra’s collapse.
While Shin claims to have had no involvement in Terra after January 2020, as evidenced by his LinkedIn profile, the authorities are still seeking his arrest. Arrest warrants have also been sought for three investors and four engineers, all of whom are accused of fraud, breach of duty, violation of capital-markets law, and illegal fund-raising.
The prosecutors’ renewed push to detain Shin clearly indicates the severity of the allegations against him and the other accused. The authorities seem determined to bring all those responsible for promoting and benefiting from the illegal sales of LUNA tokens to justice.