• 14 July, 2024
Markets News

Arrest Warrant Against Terraform Founder For Stealing LUNA Gains

South-Korean news platform, Yonhap reported that an arrest warrant has been issued against Terraform Labs co-founder, Daniel Shin for stealing LUNA profits and breaching the Electronic Financial Transaction Act.

The blockchain firm’s founder had apparently stolen the profits made from selling off $105 million worth of LUNA without any intimation to the investors. In addition, Shin simultaneously used consumer data before Terraform cryptocurrencies dissolved and have thus, also been charged with violation of the Electronic Financial Transaction Act.

The Seoul Southern District Prosecutors Office further shares that the four Terraform Labs engineers who were behind LUNA and TerraUSD were also considered for warrants.

Moreover, arrest warrants were requested for the three Terraform Labs investors whose identities were not revealed.

Meanwhile, the Terraform Labs co-founder, Do Kwon is already facing an arrest warrant issued by the South Korean police force. After Kwon failed to show up in court, the international law enforcement agency, Interpol issued a red notice seeking arrest.

Shin is believed to have held pre-issued Luna without the knowledge of the investors and stolen illegal profits of 140 billion won or $105 million after selling the tokens at a higher-than-market price.

The prosecutors also stated that while Capital Market Act doesn’t have the right to govern stablecoins, they claim Luna is a financial investment security.

Meanwhile, Shin shared,

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

He has also declined all connections with Terraform Labs and is disappointed with the prosecutors for issuing a warrant against him despite his corporation in the ongoing case.

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