Terraform Labs has been in the news for a while now. Earlier this month, according to reports, South Korean authorities had summoned Daniel Shin, a co-founder of Terraform Labs, to appear at an investigation this week about allegations that he unfairly profited from the sale of LUNA [now LUNC] tokens.
Yonhap, a South Korean news agency, is now reporting that Shin’s arrest is being sought by the prosecution. According to reports, Shin is accused by the prosecution of obtaining illicit profits while selling $105 million of LUNA at a market high without telling investors. He’s also accused of breaking the Electronic Financial Transaction Act by utilizing client information from Chai, a different business he oversaw, to advertise Luna.
Previously, on the 15th, the prosecution requested a collection preservation freeze before the conviction was confirmed to stop the sale of the property suspected of having been acquired through criminal activity prior to prosecution for the new representative property, which was quoted by the court and is worth about 140 billion won.
Additionally, CEO Shin is charged with harming the business by pushing Luna and the stablecoin Terra while exploiting customer data and monies held by Chai Corporation.
The Personal Information Protection Act and other pertinent rules are followed in the secure management of customers’ personal information, according to a notice on the homepage of Chai Corporation.
Shin Refutes Ties With Terraform Labs
Shin has repeatedly said that he severed connections with Do Kwon and Terraform Labs in 2020. He then went on to found Chai Corporation, a provider of payment technology, where he is presently CEO and founder.
According to the most recent source, authorities have now charged the former Terra official with “breach of duty, as Chai Corporation’s customer information and finances were allegedly used to promote Terra’s stablecoin and Luna cryptocurrency.”
He will also be questioned about if he knew about insider trading and price manipulation that Terraform Labs allegedly carried out to raise the price of LUNA.
Do Kwon also has a warrant out for his arrest, however it is still unknown where he is. Exiting the country has been prohibited for key Terraform Labs personnel and former workers.