Last Updated on March 27, 2023 by Bitfinsider

The other co-founder of Terraform Labs, Shin Hyun-Seong, also known as Daniel Shin, is being sought by South Korean officials after Do Kwon, another co-founder, was apprehended in Montenegro while attempting to board a plane using forged documents.

The participation of numerous Terra associates in assisting Do Kwon promote risky and uncertain investment opportunities using Terra (LUNA) and TerraUSD (UST) tokens has been suspected by South Korean authorities since November 2022.

But according to a report, South Korean prosecutors are reportedly trying again to arrest Shin after Kwon was apprehended on March 23, 2023. It states that the prosecutors are making a fresh effort to place Shin in custody. A public announcement in this respect has not yet been made, though.

Before Terra’s demise, authorities have previously claimed that Shin made about $105 million in earnings from the unauthorized sales of LUNA tokens. However, as shown by his LinkedIn profile, Shin asserts that he had no connection with Terra after January 2020.

Later, warrants for Shin’s arrest as well as the arrests of three investors and four experts were requested. The co-founder is accused of fraud, negligence, breaking the law governing capital markets, and unlawful funding.

Kwon was held by Montenegro officials for the customary 72 hours after being discovered using forged travel documents. However, the Montenegrin court granted the authorities’ plea to extend Kwon’s detention by 30 days.

One of Kwon’s attorneys intends to appeal the court’s ruling and ask for a shorter period of detention, claiming there was no intent to use false papers. Kwon was regarded by the judge as a foreign national whose identity was unclear.