Terraform Labs Co-founder Faces Legal Proceedings: Trial Preparations Underway
Legal proceedings have been initiated against Shin Hyun-Seong, also known as Daniel Shin, concerning charges concerning alleged illicit profits from the sale of Terra (LUNA) tokens.
The co-founder of Terraform Labs, Daniel Shin, was indicted in South Korea on April 25 in connection with the collapse of Terra and Luna cryptocurrencies. Shin, along with co-founder Do Kwon, established Terraform Labs in 2018.
The company introduced the Luna cryptocurrency later that year and linked it to the algorithmic stablecoin Terra in 2020 to maintain a peg to the value of the US dollar.
Last September, South Korean authorities issued an arrest warrant for Do Kwon, while the US Securities and Exchange Commission filed a securities fraud lawsuit against him in February.
After evading law enforcement for several months, Kwon was also apprehended in Montenegro in March. He now faces additional charges in Montenegro, including allegations of forging his passport in an attempt to travel to Dubai.
Kwon is scheduled to stand trial on May 11 and faces potential extradition to the United States and South Korea.
The collapse of Terra in May 2022 set off a chain reaction, leading to a crash in the cryptocurrency market.
As the platform's algorithmic stablecoin, USTC, depegged from the US dollar, authorities began investigating the potential involvement of both Kwon and Shin in any illicit transactions preceding and during the market crash.
On July 10, the Seoul Southern District Court conducted a trial preparation hearing for Shin Hyun-Seong, along with seven alleged accomplices, as reported by News1 Korea.
The 14th division of the Seoul Southern District Court Criminal Agreement will oversee the trial preparations under the guidance of Chief Judge
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