Court rejects prosecutors’ bid to detain Terraform Labs co-founder Daniel Shin

The Seoul Southern District Court rejected the prosecutor’s request for a warrant to detain Terraform Labs co-founder Daniel Shin. Yonhap reports.

The decision also applies to arrest warrants for three investors and four developers of the company. The reasons for the decision were not disclosed.

The corresponding requests were filed with the court on November 30. The prosecutor suspects Shin of illicit profits of about $105 million from the sale of pre-mined LUNA.

The agency noted that it regards cryptocurrencies as securities. Shin is also accused of violating the rules governing electronic financial transactions, as data and funds of fintech company Chai Corp. were allegedly used to promote LUNA.

The latter also belongs to the entrepreneur. According to Shin, after founding Chai Corp in 2020, he did not engage in activities related to Terraform Labs.

Earlier in September, the Seoul court issued an arrest warrant for Terraform Labs co-founder Do Kwon and five other employees.

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