Following the arrest of Terraform Labs co-founder Do Kwon in Montenegro, South Korean officials have intensified attempts to locate and arrest Shin Hyun-Seong, also known as Daniel Shin – Terra’s other co-founder.
Since November 2022, South Korean authorities have suspected multiple Terra colleagues of aiding Do Kwon in promoting unstable and uncertain Terra (LUNA) and TerraUSD (UST) token investment prospects.
Bloomberg says that after Kwon’s arrest on March 23, 2023, South Korean prosecutors are launching a new attempt to arrest Shin. It states that the prosecutors are redoubling their efforts to apprehend Shin. In this regard, however, no formal declaration has been made public.
Prior to Terra’s collapse, authorities alleged that Shin profited approximately $105 million via the unlawful selling of LUNA tokens. Shin, on the other hand, asserts he was no longer involved with Terra after January 2020, as demonstrated by his LinkedIn profile.
In addition to Shin, three investors, and four engineers were subsequently sought for arrest warrants. The co-founder is accused of fraud, breach of duty, violation of capital markets law, and unlawful fundraising.
Kwon was imprisoned for the normal 72 hours by Montenegrin officials after being apprehended with counterfeit travel documents. In response to a plea from the police, the Montenegro court extended Kwon’s incarceration by 30 days.
One of Kwon’s attorneys intends to challenge the court’s ruling and request a reduction in his incarceration period on the grounds that there was no intent to employ forgeries. The court deemed Kwon to be a foreign national whose identification was unclear.
