South Korea raises pressure to expel Terra-Luna stablecoin founder Do Kwon

SNEAK PEEK

• South Korean prosecutors to increase efforts to arrest and expel Kwon Do-Hyung and five other Terraform employees. 
• The U.S. Securities and Exchange Commission filed a lawsuit against Kwon and Terraform for cheating investors via a multi-billion dollar crypto asset securities fraud.
• The Seoul prosecutors’ office is looking forward to requesting an arrest warrant for Terraform co-founder Daniel Shin.

South Korean prosecutors will expand their association with overseas legal agencies and correlatives to ease Kwon Do-Hyung’s arrest and expulsion. Hyung has been charged with the Terra-Luna stablecoin’s crash.  

Associating with overseas agencies will support the return of Kwon along with five other Terraform employees to Korea. All these people were listed in an arrest warrant that was issued in September 2022. 

All the individuals were listed in an arrest warrant issued last September. The five individuals also include Nicholas Platias, the former head of research at Terraform Labs, and Han, the former chief executive officer of Chai Corporation. 

The prosecutors’ office spokesperson refused to share any more information regarding the legal support with overseas counterparts. The Securities and Exchange Commission filed a lawsuit against Kwon and Terraform last month on the grounds of defrauding investors by conducting a “multi-billion dollar crypto asset securities fraud.”

Former employees at Terraform are being questioned by the Federal Bureau of Investigation and the Southern District of New York prosecutors. Last week, it was reported that the Singapore police had launched an investigation into Terraform Labs.

South Korean prosecutors flew to Serbia last month to ask local authorities for support in expelling the Terraform chief. According to the Seoul prosecutors’ office, the Serbian authorities agreed to help. 

Luna cryptocurrency hasn’t been a financial security ever, as per Terraform Labs. It also touted the investigation on Kwon and the firm by South Korea as being baseless and politicized. In a podcast last year, Kwon said that he accepts his responsibility for the Terra project’s failure; however, he repeated that there was no fraud.

The Seoul prosecutor’s office assured they are thinking about requesting an arrest warrant for Daniel Shin, Terraform co-founder, on charges that include misrepresenting the Luna cryptocurrency, counterfeiting, and benefiting by US$100 million by selling the token before its crash. 

Shin has refused to make such monetary profits from Luna and said that he sold the majority of his holdings before the price increased and still had a considerable amount during the crash that happened in May. Furthermore, he denied the allegations that he was promoting Terra stablecoin as a payment method despite the authorities’ several warnings and claimed not getting such notices. 

A South Korean court dismissed prosecutors’ request in December to issue an arrest warrant for Shin.

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• Source: https://investorbites.com/south-korea-raises-pressure-to-expel-terra-luna-stablecoin-founder-do-kwon/