South Korean authorities are reportedly renewing their efforts to arrest Shin Hyun-Seong, co-founder of Terraform Labs, following the recent arrest of his colleague, Do Kwon, for allegedly promoting unstable investment opportunities. Shin is accused of earning $105 million in profits from illegal sales of LUNA tokens before Terra’s collapse, but he claims to have had no involvement in Terra since January 2020.
Arrest warrants were also sought for three investors and four engineers, with charges including fraud, breach of duty, violation of capital markets law and illegal fundraising. Kwon was detained in Montenegro after being caught using fake travel documents, and his detention has been extended by 30 days. One of Kwon’s legal representatives plans to appeal the decision and seek a reduction in detention time.
The authorities’ renewed efforts to arrest Shin suggest that they are cracking down on illegal activities in the crypto space, which has seen numerous high-profile collapses and scandals in recent years.
