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South Korea Issues Arrest Warrants for Former Do Kwon Colleagues

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South Korea Issues Arrest Warrants for Former Do Kwon Colleagues

Do Kwon, the co-founder and CEO of Terraform Labs, is still being sought after, but South Korean authorities have expanded their inquiries to include other Terra executives.

iexclusivenews reports that an arrest warrant was issued by the prosecution for co-founder Daniel Shin and seven additional engineers.

And investors of the company on the grounds that they may have made illegal profits prior to the catastrophic collapse of the Terra ecosystem.

The Seoul Southern District Prosecutors Office in South Korea had reason to believe that Shin was in possession of pre-issued Terra (LUNA) tokens.

Which investors were not made aware of. So, Shin allegedly sold the pre-issued tokens during the bull market and made profits of 140 billion won, or about $105 million.

Arrest warrants were also issued for three Terraform Labs investors and four engineers in charge of the TerraUSD (UST) and LUNA initiatives.

What You Should Know 

According to local news agency Yonhap. On November 19, South Korean authorities seized Shin’s assets worth more than $104 million on suspicion of making unfair profits.

Shin’s attorney maintained the counter-narrative at the time, stating that:

“reports that CEO Shin Hyun-seong sold Luna at a high point and realized profits or that he made profits through other illegal methods are false.”

Shin argued the following when speaking against the arrest warrant:

“I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse.”

The seizure of funds was intended to limit further losses for investors in the event that Shin decided to sell the stolen funds.

While Kwon claims he is not on the run from South Korean authorities, 4,000 members of a retail investor group are attempting to locate the fugitive.

On October 6, South Korea’s Ministry of Foreign Affairs ordered Kwon to surrender his passport or have it permanently canceled. The deadline has since passed.

According to a South Korean media report, prosecutors obtained evidence regarding Kwon’s order to manipulate the price of Luna Classic (LUNC).

iexclusivenews understands that when contacted by Cointelegraph, a Terraform Labs spokesperson dismissed the allegations.

Expressing disappointment that “Korean prosecutors continue to try to contort the Capital Markets Act to fit their agenda and push baseless claims.”

However, iexclusivenews Nigeria reports that according to unconfirmed reports. Kwon relocated from South Korea to Singapore before settling in Dubai, United Arab Emirates.