South Korea issues arrest warrant for Do Kwon’s former colleagues

As the search for Terraform Labs co-founder and CEO Do Kwon continues, South Korean authorities are expanding their investigation to include other Terraform executives. Prosecutors have issued arrest warrants to co-founder Daniel Shin and seven of his other engineers and company investors on suspicion of making illegal profits before the massive collapse of the Terra ecosystem. has been issued.

South Korea’s Seoul Southern District Public Prosecutor’s Office suspected that Shin possessed pre-issued Terra (LUNA) tokens without the knowledge of investors. In doing so, Shin reportedly made a profit worth KRW 140 billion (approximately $105 million) from selling pre-issued tokens in the bull market.

Arrest warrants were also sought for three investors in Terraform Labs and four engineers responsible for the TerraUSD (UST) and LUNA initiatives. Confirmed Local media Yonhap News. On November 19, South Korean authorities seized more than $104 million of his assets from Shin under the same suspicion of making unfair profits.

At the time, Shin countered, “The reports that CEO Shin Hyun Sung made a profit by selling Luna at a high price, or that he made a profit in other illegal ways, are not true.”

Speaking against the arrest warrant, Singh pointed out:

“I left[Terraform Labs]two years before Terra and Luna collapsed, but I had nothing to do with the collapse.”

The seizure of the funds was intended to minimize further losses for investors should Singh decide to dispose of the stolen funds. Kwon claims he has not fled South Korean authorities, but his 4,000 members of a private investor group are trying to locate the fugitive.

On October 6, South Korea’s Ministry of Foreign Affairs ordered Kwon to return his passport. Failure to do so will result in his passport being permanently revoked. The deadline has passed since then.

Related: Terra Labs Defends Funds Misuse Allegations With Luna Guard Commission Audit

Local reports from South Korea say prosecutors have obtained evidence related to Kwon’s Luna Classic (LUNC) price-fixing order. However, a spokesperson for Terraform Labs denied the allegations in an interview with Cointelegraph, stating that South Korean prosecutors are trying to distort capital market law to suit their agenda and push for unsubstantiated allegations. He stressed that he was disappointed in

According to unconfirmed reports, Kwon moved from South Korea to Singapore and eventually to Dubai in the United Arab Emirates.