Daniel Shin, the co-founder of the Terra ecosystem that collapsed last year by wiping billions of dollars off the crypto market, has reportedly appeared in the Seoul Southern District Court.
The claims pointed out that Shin testified in the South Korean court over his potential role in the downfall.
South Korean prosecutors' allegations against Shin include the violation of several laws, such as the Capital Markets Act and the Electronic Financial Transactions Act, and gaining illegal profits from the failure of Terra ecosystem-related tokens.
- Shin previously claimed that he left Terraform Labs, the firm behind the Terra ecosystem, two years before the collapse and had nothing to do with the downfall.
- In November last year, law enforcement agents seized Shin's $106M that was generated from the sale of Terra ecosystem's native token, Luna.
- Terra founder Do Kwon was recently arrested at the Podgorica Airport in Montenegro with Han Chang-Joon, the chief financial officer of Terraform Labs, while trying to fly to Dubai carrying falsified traveling documents.
- Kwon similarly faces many lawsuits and investigations in several countries, including South Korea and the U.S., with allegations such as tax fraud, deceiving investors, and building a Ponzi scheme.
- Both the U.S. and Kwon's native South Korea seek the 31-year-old founder's extradition.
The multibillion-dollar Terra ecosystem collapsed last year after Luna's price plummeted nearly to zero in May 2022 and lost all its value against the U.S. dollar (USD), triggering a prolonged crypto winter.
- The collapse caused over $60B of money to be wiped off the crypto market.
