Arrest warrants are issued in South Korea for known associates of Do Kwon

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Last Updated on November 30, 2022 by Bitfinsider

Do Kwon, the co-founder and CEO of Terraform Labs, is still being sought for, but South Korean officials have expanded their inquiries to include additional Terra executives. An arrest warrant was filed by the prosecution for co-founder Daniel Shin and seven more engineers and investors of the company on the grounds that they may have made illicit profits prior to the catastrophic collapse of the Terra ecosystem.

The Seoul Southern District Prosecutors Office in South Korea had reason to believe that Shin was in possession of pre-issued Terra (LUNA) tokens, which investors were not made aware of. So, Shin allegedly sold the pre-issued tokens during the bull market and made gains of 140 billion won, or around $105 million.

According to the local media outlet Yonhap News Agency, arrest warrants were also requested for three Terraform Labs investors and four of the engineers working on the TerraUSD (UST) and LUNA ventures. Under the same allegation of generating illegitimate gains, South Korean authorities confiscated Shin’s assets worth more than $104 million on November 19.

The counter-story was upheld at the time by Shin’s attorney, who claimed that “Reports that CEO Shin Hyun-seong sold LUNA at a high point and realized profits or that he made profits through other illegal methods are not true.”

Shin argued the following when speaking against the arrest warrant: “I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse.”

In case Shin opted to dispose of the stolen money, the money was seized to limit future losses for investors. Kwon insists that he is not evading South Korean police, but 4,000 members of a retail investor club are working to find the fugitive.

Kwon was given a deadline of October 6 by the South Korean Ministry of Foreign Affairs to hand over his passport, failing which it would be permanently cancelled. Since then, the deadline has gone.

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