In May of this year, the crypto market was shaken to its foundations by the demise of the Terra (LUNA) network. The project, which was founded by the now infamous Do Kwon, went down catastrophically with many billions in losses as a result.
Earlier already authorities in South Korea announced that they were looking for Do Kwon, but it now appears that South Korea has also issued an arrest warrant for seven other former Terraform Labs executives.
Terra demise
Prosecutors in South Korea have, among others, sued Terra co-founder Daniel Shin. In addition, at least seven other people involved with Terraform Labs received an arrest warrant. They are all suspected of making illegal profits from the collapse of the Terra ecosystem, reports Yonhap News.
It is suspected, among other things, that Daniel Shin owned LUNA tokens that were issued to him without investors being aware of this. The South Korean authorities claim that Shin made at least $105 million in profit from these LUNA tokens illegally during the bull market to sell.
Defendant claims innocence
Daniel Shin himself has already responded to the news that he is wanted by the South Korean police. He says he has done absolutely nothing wrong and has not worked at Terraform Labs for years. He indicates that he is disappointed in the fact that he is now being prosecuted, while he has provided nothing but his cooperation.
“I left Terraform Labs two years before the collapse of Terra and Luna, and have nothing to do with the collapse.”
Shin’s lawyer has also issued a statement. Not surprisingly, this lawyer also claims that his client is not guilty in any way.
“Reports that CEO Shin Hyun-seong sold LUNA at a high point and made a profit or that he made a profit through other illegal methods are not true.”
South Korea also has more than $104 million in assets confiscated from Daniel Shin. This was again done under suspicion of obtaining illegal profits during his tenure at Terraform Labs.