Terra’s Do Kwon former colleagues targeted by the  latest arrest warrant


TL;DR Breakdown

  • Arrest warrants have been issued by South Korea for Do Kwon’s former coworkers.
  • The authorities claim that they may have made illicit profits prior to the catastrophic collapse of the Terra ecosystem.

Do Kwon, the co-founder, and CEO of Terraform Labs, is still being hunted 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 ecosystem.

In South Korea, the Seoul Southern District Prosecutors Office believed that Shin possessed Terra LUNA, tokens that were pre-issued without the awareness of investors in the general public. So, Shin allegedly sold the pre-issued tokens during the bull market and made gains of 140 billion won, or around $105 million.

Do Kwon’s colleagues took advantage of the struggling Terra

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 claims that CEO Shin Hyun-Seong sold Luna at a high point and realized gains or that he acquired riches through other illicit ways are not true.

Shin argued against the arrest warrant saying that he left Terraform Labs two years before the Company collapsed and had nothing to do with it.

The funds were seized in order to limit further losses for investors in the event that Shin opted to spend the stolen money. 4,000 members of a retail investor organization are working to find the fugitive, despite Kwon’s claims that he is not evading South Korean police.

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 canceled. Since then, the deadline has elapsed.


Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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