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Do Kwon’s colleague refuses to testify in Terraform Labs collapse case
Terraform Labs co-founder Daniel Shin filed a statement with the South Korean National Assembly, stating reasons why he cannot testify about the Terra-LUNA collapse on Thursday, October 6. Shin wrote that his appearance at the parliamentary audit could interfere with the ongoing investigation by local prosecutors.
Last month, Korean media expressed doubts about the effectiveness of Shin’s interrogation, as he claimed to have severed relations with Terraform Labs co-founder and CEO Do Kwonback in 2020. It was then that Daniel Shin left the company and founded the fintech startup CHAI Corp. where he still holds the position of CEO. However, media reports claim that Sheen’s company used its customers' deposits to help Terraform. Also in July of this year, Shin’s private residence was searched by South Korean prosecutors investigating the Terra-LUNA collapse.
If Shin is exempted from the parliamentary audit, Kim Ji-young, CEO of South Korean blockchain infrastructure provider DSRV Labs, will be the only official witness to meet with lawmakers. It is worth noting that DSRV, which is backed by tech giant Samsung, participated in the Terra blockchain as a validator.
In early October, Terraform Labs, the firm behind the collapse of the LUNA cryptocurrency, said that South Korean prosecutors' efforts to prosecute the company’s CEO Do Kwon violated his civil rights.
«We believe that this case has become highly politicized and that the actions of the Korean prosecutors demonstrate injustice and non-compliance with the basic rights guaranteed by state law,» said a representative of Terraform Labs.
We would like to remind you that shortly after Interpol issued a «red notice» to law enforcement agencies around the world for the arrest of Terraform Labs co-founder Do Kwon, 3313 BTC were moved from the Binance wallet Luna Foundation Guard (LFG) to the cryptocurrency exchanges Kucoin and OKX. However, Do Kwon himself denies any involvement in the mysterious bitcoin withdrawal.