Terra Co-Founder Daniel Shin Appears in South Korean Court

  • Shin believes that he did not falsely promote TMON’s payment services to gain undue profits.
  • South Korea is seeking the extradition of co-founder Do Kwon from Montenegro.

Terraform Labs co-founder Shin Hyun-Seong aka Daniel Shin, reportedly appeared at the Seoul Southern District Court in Yangcheon-gu earlier today. South Korean authorities stepped up efforts to arrest Shin shortly after his former business associate was detained in Montenegro earlier this week.

South Korean local media reported earlier today that Daniel Shin came to court after receiving a second warrant for interrogation. Yoo Hwan-woo, chief judge in charge of warrants, reportedly conducted an arrest review for the Terra co-founder ahead of his potential arrest. Shin was questioned about his role in the defunct crypto firm.

The prosecution has accused Daniel Shin of fraudulently promoting Terra-Luna-based payment services and pocketing 140 billion won ($105 million) in the process. The prosecution has further alleged that the co-founder continued to market TMON as a secure payment service despite having knowledge of Terra’s impending crash.

Shin’s court appearance comes after a second warrant was issued demanding his interrogation. The initial warrant was issued on March 27, in which the Seoul Southern District Prosecutor’s Office’s Financial and Securities Crime Joint Investigation Team alleged that Shin had violated the country’s Capital Markets Act, the Electronic Financial Transactions Act, and the Specific Financial Information Act, among several other charges.

“In this reclaim, charges of fraud in financial investment products (fraudulent, illegal transactions under the Capital Markets Act and fraud under the Special Act), which were not included in the first arrest warrant request, violation of the Specific Financial Information Act, breach of trust, and breach of trust in business were added,” an official from the prosecution stated.

Daniel Shin’s arrest review comes roughly a week after his accomplice Do Kwon was arrested in Montenegro. Kwon was caught leaving the country using forged identification documents. The country’s Justice Minister said in a recent press conference that Kwon’s extradition had been requested by South Korea and the United States.

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