A South Korea-based news platform, YTN, has reported that the prosecutors in the Terra case have requested the court to seize as well as secure the assets of Daniel Shin before trial. Daniel Shin is one of the co-founders of the famous Terraform Labs which declined due to losing the dollar peg of its local token LUNA. After the crash of the platform, the co-founders (including Do Kwon) have reportedly been running from law enforcement.
South Korean Court Permits for the Seizure of $104M of Terra Co-Founder Daniel Shin
In this case, Interpol issued a red notice against Do Kwon. South Korea-based prosecutors then stood up to pursue confronting the co-founder of Terraform Labs, Shin Hyun-Seung (also called Daniel Shin), accusing him of potentially yielding illegal profits with LUNA token – now rebranded as Luna Classic (LUNC). The co-founder has been summoned on the behalf of the prosecutors to cooperate in the investigation procedure for the respective allegation.
The prosecutor operating at the office of Seoul Southern District Prosecutors, Choi Sung-kook, has validated the reports. The accusation asserts that Shin has reportedly been collecting Luna tokens and those were pre-issued without informing the normal investors about them to yield more than 140B Korean won (approximately US$106) at the time of their sale at the peak point. As per the prosecutors, the respective transaction was scam-based and an infringement of the native law for capital markets.
Daniel Shin Negates the Allegations Saying He Dismissed His Links with Terra in 2020
On the other hand, the executive asserts that he had terminated his bonds with Terraform Labs as well as Do Kwon (the CEO thereof) back in 2020 while moving to Chai Corporation. He is currently operating at Chai Corporation as its CEO. As the latest development, in this case, the request of the South Korean prosecutors for seizing his $104 million for the above-mentioned allegation has been approved on the behalf of the court. Shin’s holdings will be secured before the start of his trial in the court.