South Korea gets ready for the first court trial of Terra co-founder in May concerning the Terra-LUNA crisis.
Terra co-founder Daniel Shin is scheduled to attend his initial trial at the Seoul Southern District Court on May 26. South Korean prosecutors have charged Daniel Shin and nine other individuals with various offenses, including fraud, in connection with the Terra-LUNA crash in May 2022, which resulted in the loss of $40 billion of investors’ funds. (South Korean prosecutors indicted Daniel Shin)
In the meantime, South Korea is making preparations to extradite Do Kwon, another co-founder of Terra, who is currently held in custody in Montenegro. Do Kwon is awaiting court proceedings regarding charges of passport forgery and the ongoing extradition case.
South Korea Sets Trial Date For Terra’s Daniel Shin
The Seoul Southern District Court in South Korea is scheduled to hold the first trial on May 26 for Daniel Shin, one of the co-founders of Terra, and seven other individuals who have been indicted on various charges, including fraud, breach of duty, and embezzlement. This information was reported by the local news agency Yonhap. (reported)
On April 25, the Seoul Southern District Prosecutor’s Office charged Daniel Shin and seven others with multiple offenses, including fraud, breach of duty, violation of the Capital Markets Act, and embezzlement. However, two affiliated individuals were specifically charged with breach of trust.
Daniel Shin has assembled a defense team consisting of 30 lawyers, including former judges, prosecutors, and legal experts with experience in digital assets and capital markets law. The team also includes a former prosecutor from the joint investigation team of the Seoul Southern District Prosecutor’s Office, which looked into the Terra-LUNA crisis.
When prosecutors alleged that Daniel Shin had a more significant role than former Terraform Labs CEO Do Kwon in the collapse of Terra-LUNA, Shin responded by saying:
“I was just attempting a groundbreaking business, and I will clear up the prosecution’s misunderstanding at the trial.”
Despite multiple previous attempts, prosecutors have been unsuccessful in persuading the court to arrest Daniel Shin. Additionally, the court rejected the prosecutors’ appeal to seize Daniel Shin’s assets, stating that LUNA is not considered a security. ( LUNA is not a security )
Prosecutors express confidence in extraditing Do Kwon to South Korea.
Dan Sung-han, the director of the Seoul Southern District Prosecutor’s Office, believes that Do Kwon, co-founder of Terra, should be extradited to South Korea instead of the United States. He states that most of the evidence and Terra associates are located in South Korea. If convicted in South Korea, Do Kwon could potentially face a prison sentence of up to 40 years. ( Do Kwon can face a 40-year)
South Korean prosecutors have taken action to freeze $176 million worth of assets owned by Do Kwon, the CEO of Terraform Labs. This step was taken in response to accusations that he deceived investors in the Terra-Luna project. (frozen assets worth $176 million)
The prices of Terra (LUNA) and Terra Classic (LUNC) are experiencing downward pressure following the arrest of Do Kwon and ongoing legal actions against Daniel Shin and related entities. The current trading price of LUNA is $0.95, while LUNC is priced at $0.000089, showing a 2% decrease in the last 24 hours.