- Daniel Shin, the Co-Founder of TerraLuna, alongside seven former Terra employees, has been charged with violating the Capital Markets Act.
- Daniel Shin did not show up to court for his first trial.
- Shin’s legal team requested extra time to review the evidence.
Daniel Shin’s Preminiliary Hearing
Daniel Shin, Co-founder of TerraLuna, the now-defunct cryptocurrency platform that crashed last year, resulting in the loss of billions, was indicted in April.
The Seoul Southern District Prosecutor’s Office indicted Daniel Shin and seven others without detention on charges including embezzlement, fraud, breach of duty, and violating the Capital Markets Act.
This week, the Seoul Southern District Court commenced the first trial of Daniel Shin and seven other former Terra employees. Although Shin, who employed the services of 30 lawyers, did not attend the trial, his defense team asked for more time to prepare for criminal defense.
According to a local media outlet, the defense team stated, “The case record is vast, and there are many technical parts, so an expert review is necessary.”
Biz Chosoun, a South Korean local news platform, reported that the Terraluna case required expert knowledge since the case is based on Technology. The local media outlet also stated that the records are up to 48 volumes. Upon considering the reasons mentioned earlier, Judge Jang Seong Joon, who presided over the case, approved the request.
The Judge stated that “We will check the opinions of the lawyers and reopen the trial preparation date to decide the opportunity for defense and the order of interrogation.”
The case was adjourned to August 28th for a second hearing. As expected, the prosecutors were not in favor of the delays. The first trial should have taken place on the 26th of March, but it was postponed to the 10th of July,2023, due to a controversy over the fairness of the Chief Judge.
Fourteen Months after the disastrous crash of TerraLuna, Do Kwon awaits extradition to South Korea
The collapse of TerraLuna took the crypto industry by surprise. Fourteen months after one of the most extensive liquidity crashes in the crypto sphere, the executives of the collapsed crypto ecosystem have continued to deny the charges.
Do Kwon, the founder of Terraluna, has been on the run since the crash occurred. During the past fourteen months, there have been several lawsuits against the defunct company and its executives. The United States Securities Exchange Commission launched an investigation into the collapsed ecosystem, then eventually charged the founder and the company for defrauding investors.
Class action lawsuits have been instituted in Singapore and the United States against Terraform Labs and its executives.
A court in Seoul also issued an arrest warrant for Do Kwon, the founder of TerraLuna. Interpol also issued a red notice for Do Kwon, upon the request of South Korean prosecutors.
Amidst the chaotic events, Do Kwon was finally traced to be in Montenegro. A court in Montenegro sentenced him to four years imprisonment for having a fake passport and identification card. Terraform Labs Chief Financial Officer Han Chong-Joon was imprisoned alongside Do Kwon on the exact charges. While they were both granted bail last month, the Montenegro High Court has kept them in extradition custody at the request of South Korea.
