South Korean prosecutors issue arrest warrant for Do Kwon’s colleague

The South Korean prosecutor’s office has requested an arrest warrant for Terraform Labs co-founder Daniel Shin, Yonhap reports, citing a statement from the agency.

Law enforcement officials plan to charge Terraform Labs and one of its executives for promoting the TerraUSD (UST) stablecoin. Back in 2018, Shin stated that the stablecoin UST would be available as a payment method on online platforms for users in South Korea. However, the country’s Financial Supervisory Service has repeatedly informed the entrepreneur that, according to the Electronic Financial Transactions Act, virtual assets cannot be registered as a legal method of payment for goods and services. The co-founder of Terraform Labs is accused of violating the protocol for conducting electronic financial transactions, as funds from Chai Corp, a fintech company and Shin’s new project, were allegedly used to promote LUNA.

According to Shin, after founding Chai Corp. in 2020, he did not do anything that could connect him with Terraform Labs. «I left there two years before Terra-LUNA collapsed, and I have nothing to do with the collapse of the ecosystem,» he said. For this reason, Shin refused to testify against Terraform Labs co-founder До Квон" href="https://noworries.media/biography/do-kvon/" data-bio-id="3665">Do Kwonat a parliamentary hearing.

As a reminder, in September, South Korea issued an arrest warrant for Do Kwon and five other employees of the company. In early November, the prosecutor’s office announced that it had received evidence of Kwon’s manipulation of LUNA’s price. However, Terra’s representatives deny everything, and neither Interpol nor the defrauded investors can find Do Kwon himself.