A South Korean court has dismissed the arrest warrant of Terraform Labs co-founder Shin Hyun-seung (Daniel Shin) for the second time. The warrant was filed by the prosecution last year in connection with the collapse of Terra-Luna cryptocurrency and stablecoin.
Dismissal of the Arrest Warrant
The court stated that they found no evidence of Shin being a flight risk or tampering with evidence related to the investigation. This is the second time the court has dismissed the arrest warrant for Shin. The prosecution has stated that they will not be seeking a third warrant for his arrest.
Accusations of Fraud
Shin and Do Kwon founded Terraform Labs and are accused of breaching the rules and trust of capital markets. The cryptocurrency Terra-Luna was once valued at $40 billion, but its collapse caused massive losses to investors. The prosecution has accused Shin and Do Kwon of fraud. Shin has denied the accusations of fraud and has stated that he cut off contact with Do Kwon in 2020, before the collapse of the company.
Do Kwon’s Situation
Do Kwon has been arrested in Montenegro and is facing extradition to South Korea. He has also been found to have used fake travel documents. The police in Montenegro reported that he was attempting to flee to Dubai using a fake passport.
The dismissal of the arrest warrant for Shin may indicate a lack of evidence against him in the collapse of Terra-Luna. However, the situation with Do Kwon is still ongoing, and the prosecution is working to bring him back to South Korea to face charges. The case highlights the potential risks and challenges associated with investing in cryptocurrencies and the importance of due diligence in such investments.