Seoul court holds first hearing for Terra co-founder Daniel Shin

The Seoul Southern District Court on Monday held the first preliminary hearing for Terraform Labs co-founder Daniel Shin and seven other former Terraform employees, Korean media outlet News 1 reported. 

However, Shin, who was indicted in April for several charges including fraud, did not personally attend the hearing held in Seoul, Forkast reported.

South Korean prosecutors in April formally indicted Shin and nine others on multiple charges, including violations of capital markets law. That followed prosecutors’ months-long investigation into Terraform’s alleged wrongdoings that caused a dramatic implosion last year, wiping out more than $40 billion in investor wealth.

On Monday, Shin’s lawyers requested more trial preparation time, arguing that the case is not a simple criminal trial and requires more technical support, according to local news outlet Chosun Biz. The second trial preparation date is currently set for August 28.

‘Fictitious’ project

Terra’s algorithmic Terra-Luna stablecoin project was bound to fail and it was “fictitious,” the Seoul Southern District Prosecutors’ Office said in April. The prosecutors said the project caused “astronomical damage” for investors and took 463 billion won ($354.3 million) in profit.

The prosecutors also said in April that the authorities had frozen 247 billion won in assets. Shin’s lawyers rejected all the allegations at the time.

In May, the court dismissed the prosecutors’ second attempt for an arrest warrant for Shin, saying he wasn’t likely to destroy evidence or pose a flight risk.