South Korean prosecutors call on Terra co-founder Shin Hyun-seong to cooperate: Report
Authorities reportedly alleged Shin Hyun-seong earned roughly $105 million in profits from illegal sales of LUNA tokens before Terra’s collapse.
Authorities in South Korea have reportedly requested Terraform Labs co-founder Shin Hyun-Seong, also known as Daniel Shin, to appear as part of an investigation into the collapse of the firm.
According to a Nov. 14 report from Hankyoreh, the Seoul Southern District Prosecutor’s Office’s Joint Financial and Securities Crime Investigation Team announced that Shin should appear before prosecutors sometime this week. Authorities reportedly alleged the Terra co-founder held many Terra (LUNA) tokens — now Terra Classic (LUNC) — without the knowledge of retail investors and earned roughly 140 billion won — more than $105 million at the time of publication — in profits from illegal sales before the firm’s collapse.
“Reports that CEO Shin Hyun-seong sold Luna at a high point and realized profits or that he made profits through other illegal methods are not true,” reportedly said Shin’s attorney.
According to Shin’s LinkedIn profile, he has not been involved with Terraform Labs since January 2020 — though this would not include information on investments in the company. Shin went on to found the fintech firm Chai Corporation, where he is currently CEO.
Though Shin reportedly still lives in South Korea, his fellow Terra co-founder Do Kwon was also a target by prosecutors as part of multiple investigations into the firm globally. Reports on Kwon’s location have varied from Singapore to other countries following the collapse of Terra, but the South Korean national has repeatedly said he wasn’t “on the run.”
Wherever Kwon may be, his passport is reportedly no other valid following an October order from South Korea’s foreign ministry. The Terra co-founder faces lawsuits from investors, investigations from globally authorities, and the social media ire of many crypto users who lost money following the collapse of Terraform Labs.