Authorities in South Korea have revoked the arrest warrants that five former Terraform Labs employees had been the subject of requests from prosecutors last week.
Following the rejection of the arrest warrants, Terraform Labs issued a statement claiming that this “illustrates that the prosecutors are trying to stretch Korean laws past their breaking point.”
Daniel Shin, the project’s co-founder, is one of the people whose arrest is sought. According to the prosecution, Shin made over $100 million in profits after deceiving investors by withholding crucial information. The application for the arrest warrant also named three early-stage Terra investors and four of the engineers behind the stablecoin TerraUSD (UST) and LUNA tokens.
Prosecutors have looked into Shin on numerous occasions in an effort to learn additional details about what caused the project to fail in May. According to the prosecution, Shin received pre-issued Terra tokens, which he neglected to disclose to investors, and made $104 million when he sold the tokens.
Law enforcement raided Shin’s home and the Chai startup office, seizing $104 million worth of assets from him. Despite his prior history of providing full cooperation with current investigations, Shin’s defenders have always defended his innocence while also expressing unhappiness with the prosecution’s decision to seek an arrest warrant.
Shin attacked the prosecution for manipulating the law to blame him for Terra’s demise. The troubled co-founder bases his defense on the South Korean Capital Markets Act’s omission of stablecoins and other digital assets, but prosecutors see Luna as a type of investment security.
Do Kwon disregards the arrest warrant
After the fall, Do Kwon, the CEO of Terraform Labs, was the main suspect on the minds of law enforcement officials. The Ministry of Interior eventually invalidated Kwon’s passport after investigators’ attempts to get in touch with him failed.
To “find and provisionally arrest” Kwon, the International Criminal Police Organization (INTERPOL) issued a red alert to its member nations. Kwon insists he is not hiding and is still active on Twitter despite the massive manhunt underway for his capture.
His Twitter indicates that he is in Singapore, but the Singaporean Police Force claims that Kwon is not in the nation. However, there is widespread conjecture that the Terra founder may be hiding out in Europe. Kwon is dealing with a plethora of legal problems, such as fraud, breaking the Capital Markets Act, and numerous class action lawsuits from irate investors.
