Prosecutors seek arrest warrant for Terraform Labs' co-founder Daniel Shin: Yonhap

Prosecutors in South Korea are reportedly seeking an arrest warrant for Terraform Labs co-founder Daniel Shin.

The Seoul Southern District Prosecutors Office said Wednesday that it is seeking the arrest warrant over Shin allegedly taking illegal profits from Terra, the blockchain ecosystem overseen by Terraform Labs, prior to its spectacular collapse in May, according to a report from Yonhap News Agency.

The same authorities reportedly raided the offices of Chai Corporation, a payments technology company founded by Shin, earlier this month. Authorities in South Korea have previously issued a warrant for the arrest of Shin’s co-founder at Terraform Labs, its CEO Do Kwon, as well as asking Interpol to issue a red notice for Kwon’s arrest. That came despite Kwon’s claims that he is not on the run.

The Seoul Southern District Prosecutors Office also issued warrants for three other Terraform Labs investors and four engineers, according to the Yonhap report. The report added that prosecutors believe Shin made illegal profits of 140 billion won (around $105 million) through sales of luna, Terra’s native token. Shin is charged with violating the Electronic Financial Transaction Act.

Shin told Yonhap in a written statement, however, that he left Terraform Labs two years before the crisis that engulfed Terra and its tokens in May, and had “nothing to do with the collapse.”