The Seoul Southern District Court Holds First Preliminary Hearing for Terraform Labs Co-founder Daniel Shin
The Seoul Southern District Court recently held the first preliminary hearing for Daniel Shin and seven other former Terraform employees. Shin, who was indicted in April for several charges including fraud, did not personally attend the hearing. South Korean prosecutors formally indicted Shin and nine others on multiple charges, including violations of capital markets law. Shin’s lawyers have requested more trial preparation time, arguing that the case is complex and requires technical support. The second trial preparation date is set for August 28.
‘Fictitious’ Project and Allegations
- The Seoul Southern District Prosecutors’ Office claimed that Terra’s Terra-Luna stablecoin project was bound to fail and described it as “fictitious.”
- The project allegedly caused significant financial damage for investors and resulted in a profit of 463 billion won ($354.3 million) for Terraform Labs.
- In April, the authorities froze 247 billion won in assets.
- Shin’s lawyers rejected all the allegations made against him.
Court Dismisses Attempted Arrest Warrant
In May, the court dismissed the prosecutors’ second attempt to obtain an arrest warrant for Shin. The court determined that there was no likelihood of him destroying evidence or posing a flight risk.
Hot Take
The preliminary hearing for Terraform Labs co-founder Daniel Shin and other former employees marks a significant development in the ongoing legal proceedings. The allegations against Shin and the other defendants are serious, with prosecutors claiming that Terra’s stablecoin project was fraudulent and caused substantial harm to investors. It remains to be seen how the trial will unfold and what evidence will be presented. The outcome of this case could have far-reaching implications for the cryptocurrency industry in South Korea.
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