South Korean prosecutors are reportedly seeking an arrest warrant for the co-founder of Terraform Labs and seven others as part of an investigation into the infamous accident in the Terra ecosystem (LUNA). South Korea’s Yonhap News Agency reports that prosecutors investigating the case are asking the Seoul South District Procuratorate to issue an arrest warrant for Terraform Labs co-founder Shin Hyun-Seong, also known as Daniel Shin. Shin allegedly rescued pre-issued LUNA tokens without notifying regular investors and made 140 billion won (about US$105 million) in illegal profits by selling these tokens at a higher price.
Shin, the CEO, and founder of payments platform Chai Corporation is also facing charges of violating the Electronic Financial Transactions Act for allegedly providing the company’s customer information to Terra. Shin says he is no longer a member of Terraform Labs: “I left (Terraform Labs) two years before the collapse of Terra and Luna, and I have nothing to do with the collapse. Guarantees are also being sought for three investors from Terraform Labs and four engineers from LUNA and stablecoin Algorithmics, according to the report. TerraUSD (UST).
The request comes as Terra co-founder and CEO Do Kwon remain at large. Kwon has admitted to being responsible for the collapse of LUNA and UST, but his whereabouts are unknown.