According to several stories in the media, the co-founder of Terraform Labs is being investigated for allegedly breaking the Electronic Financial Transaction Act as well as obtaining unlawful gains.
Yonhap, a newswire agency based in South Korea, is claiming that prosecutors are trying to have an arrest warrant issued for Daniel Shin, who is the co-founder of Terraform Labs.
According to Yonhap, prosecutors are accusing Shin of illegally profiting from the sale of 105 million LUNA shares while the market was at its highest point without telling investors. In addition to this, he is being accused of breaking the Electronic Financial Transaction Act by utilizing client information from a different company that he operated called Chai in order to promote Luna.
Shin departed Terraform Labs in March 2020 in order to concentrate on the financial technology company Chai. Additionally, he has refuted past rumors that he sold LUNA at the top, and Chai has said that the company keeps all user data in compliance with local privacy rules. In the middle of November, law enforcement conducted a search warrant at the Chai office.
In addition, an arrest warrant has been issued for Do Kwon, and it is presently unclear where he is located. There is a travel prohibition in place for key people and previous workers of Terraform Labs who are now employed elsewhere.
