After the arrest of the founder of Terraform Labs, Do Kwon in Montenegro while trying to fly offshore using false documents, South Korean authorities have made efforts to track down and arrest the company’s other co-founder, Shin Hyun-Seong, also known as Daniel Shinta.
Since November 2022, South Korean authorities have suspected the involvement of many of Terra’s colleagues in helping Do Kwon promote unstable and uncertain investment opportunities with Terra (LUNA) and TerraUSD (UST) tokens.
Translation from the Minister of Interior of Montenegro Filip Adzic – “One of the most wanted fugitives in the world was arrested in PODGORICA.
Montenegrin police have detained a man suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon…” https://t.co/sCJ0FFrlEk
— Simon Dixon (@SimonDixonTwitt) March 23, 2023
However, after Kwon was arrested on March 23, 2023, South Korean prosecutors made new efforts to arrest Shin, Bloomberg reports. It read that prosecutors are making a new push to detain Shin. However, there is no official announcement regarding this.
Authorities previously alleged that Shin made about $105 million in profits from illegal sales of LUNA tokens before Terra collapsed. On the other hand, Shin claims to have no involvement in Terra after January 2020, as evidenced by his LinkedIn profile.
Arrest warrants were also later sought for Shin, along with three investors and four engineers. The charges against the co-founder include fraud, breach of duty, violation of capital market laws and illegal fundraising.
related: Do Kwon faced fraud charges from US prosecutors hours after his arrest
After being caught using fake travel documents, Kwon was detained by Montenegrin authorities for 72 hours. However, after a request by the authorities, the Montenegrin court approved the extension of Kwon’s detention for 30 days.
Claiming that he did not intend to use forged documents, one of Kwon’s legal representatives plans to appeal the court’s decision and seek to reduce his prison term. The court considered that Kwon was a foreign national whose identity was not clearly known.
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