- An arrest warrant has been issued for Terraform Labs co-founder Daniel Shin
- Shin has been accused of illegally profiting from a $105 million LUNA sale
- Shin is also wanted over the use of customer data from his other company, Chai
Prosecutors have issued an arrest warrant for Terraform Labs’ co-founder Daniel Shin, according to the Yonhap news agency. Yonhap reports that Shin has been charged with fraud and market manipulation after taking illegal profits on $105 million worth of LUNA tokens, right when the price was near what would prove to be its forever high price. Shin has also been charged with violating the Electronic Financial Transaction Act for promoting LUNA through customer data from Chai, a separate firm he managed.
Shin Denies All Charges
Shin helped Do Kwon found Terraform Labs in 2018 but left the project in March 2020 to focus on Chai, meaning he wasn’t around when Terra USD and LUNA collapsed in such spectacular fashion in May. Its collapse led to an arrest warrant being issued for Kwon, although this has not yet been carried out because his location is currently unknown.
Shin has now been added to the list of Terraform Labs execs that the Seoul Southern Prosecutors’ Office want to speak to over the Terra USD/LUNA collapse, although he has previously denied selling LUNA at the top.
Authorities raided the Chai office in mid-November, and it seems that what they found there has given them cause to seek Shin’s arrest. However, Shin said in the wake of the raid that Chai stores all its customer data in accordance with local privacy laws and that he did not use the data to illegally promote LUNA.