South korean detectives have Come closer The court will order an arrest warrant for Terraform Labs co-founder Daniel Shen, along with seven engineers and other investors in the company, after they were suspected of making illicit profits in front of the mega-corporation. Collapse of the Terra ecosystem.
Recall that Terra co-founder and colleague Shane, Do KwonThey are currently facing prosecution due to the collapse of the project. It should be noted that the Terra ecosystem collapse that emerged last May contributed to the deteriorating market conditions plaguing the cryptocurrency space. Investors lost millions of assets due to the crash, prompting several global investigators to step in.
However, amid the ongoing investigation of the case, Shin continued to expose his connection to Project Terra and denied his involvement in its collapse.
"I left two years before the collapse of Terra and Luna and have nothing to do with the collapse," the co-founder insisted.
Shin continuous probe in South Korea
Last July, investigators broke into Daniel Shen’s home over the indictment of Terra Collapse co-founder, and later this month, they took him into custody. The co-founder has since faced trial.
According to investigators, Daniel Shin allegedly amassed more than $104 million in illegal profits from the LUNA project. Moreover, it is said that he collected the profits even before the official issuance of the cryptocurrency without any prior disclosure to the investors.
Moreover, the local prosecutors also charged the Terra co-founder with breach of duty. He allegedly used the personal information of customers at Chai Corporation, the payments technology company he founded, to promote Terra cryptocurrency.
Moreover, in mid-November, prosecutors obtained court approval to freeze about $104 million in assets owned by Sheen. According to the Seoul South District Court in South Korea, Shin illegally accumulated these assets through the LUNA cryptocurrency.
Meanwhile, in the latest development, South Korean investigators have approached the court to obtain an arrest warrant for the embattled co-founder, Do Kwon. For now, investigators are still tracking Kwon. However, the court is scheduled to hear the application on Friday, with Sheen taken into custody.