The Korean court has now denied the arrest warrant for Terra co-founder Daniel Shin. In a court ruling, Shin was unlikely to run away or destroy evidence. The court also rejected arrest warrants for three of Terra’s original investors and four developers.
According to Yonhap News Agency, in a ruling issued today local time, a South Korean court rejected the arrest warrant for Daniel Shin, co-founder of Terra and former CEO of Chai Corporation.
The court said that during the investigation, Shin’s behavior made it difficult to believe that he was in danger of fleeing or would destroy evidence, according to Yonhap. The court also rejected arrest warrants for three of Terra’s original investors and four developers.
South Korea previously issued an arrest warrant for Terra co-founder Do Kwon, whose whereabouts are unknown, and key employees and former employees of Terraform Labs have been banned from leaving the country.
Daniel Shin and seven other Terra executives appeared in South Korea on Friday morning to attend a trial seeking arrest warrants for eight people.
Prosecutors said Shin was accused of illegally profiting more than 140 billion won (approximately $107 million) through LUNA and abusing the personal information of Chai Corporation users to promote Terra-Luna. 70% stake in Luna and still holds a large amount of LUNA during the crash in May.
Chai, the company founded by Daniel Shin, has been raided by South Korean authorities, according to previous reports. Daniel Shin’s Chai Group, which partnered with Terraform Labs in 2019, has been accused of violating capital markets rules in previous dealings with Terra.
Shin has denied the allegations, saying he sold over 70% of his Luna holdings before the price surge, and still held a significant amount of LUNA the collapse in May. Shin also claims that the financial authorities have never expressed their disapproval for incorporating crypto in e-commerce payments.
South Korea is still working to investigate the collapse of the Terra-Luna project in May, resulting in losses for hundreds of thousands of investors worldwide. Despite various attempts to capture Terra CEO Kwon Do-hyung, or Do Kwon, his whereabouts remain unclear.
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