South Korean police issue arrest warrants for several Terraform Labs employees

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The Seoul Southern District Prosecutor's Office has issued arrest warrants for the co-founder of Terraform Labs, as well as several employees and investors of the company, suspected of illegally profiting.

Daniel Shin ownedLUNA cryptoassets, which were previously released without the knowledge of investors, law enforcement officials assure. Shin is suspected of selling LUNA during a bullish trend in the cryptocurrency market and making a profit of 140 billion won (about $105 million), which contributed to the collapse of the Terra ecosystem. Warrants have also been issued for the arrest of four Terraform Labs engineers and three investors in LUNA and the UST stablecoin who promoted these digital assets.

In mid-November, South Korean authorities attractedShin was investigated and funds earned from the sale of crypto assets were confiscated. This withdrawal will reduce the risk of further losses for investors if Shin decides to get rid of the funds, security officials say. Shin's lawyer argues that such accusations are untrue. Shin denies any involvement in the collapse of the Terra project, as, according to him, he left Terraform Labs two years before the incident.

The South Korean prosecutor's office announced the presenceevidence that project team leader Do Kwon manipulated the price of Luna Classic (LUNC). However, Terraform Labs lawyers claim that Korean prosecutors are trying to distort the local Capital Markets Law and are making unfounded claims.

The founder of the project, Do Kwon, claims that he is not hiding from the South Korean authorities. In October, 4,400 retail investors in UST banded together to find him.