South Korea Cancels An Order To Arrest Do Kwon's Partners, Lho?

South Korea has canceled the arrest of the founder of Terra Luna. (Photo; Doc. CoinBulteni)

JAKARTA The collapse of Terra LUNA in May 2023, which has harmed investors, forced South Korean authorities to hunt down the founders of Terraform Labs, Do Kwon and his colleagues. In May, the prices of LUNA and UST fell more than 99 percent in as many days.

Even so, the latest report actually states that the South Korean authorities have canceled the warrant for the arrest of Do Kwon cs. Whereas previously, local authorities had instructed them to hunt down key figures in the fall of Terra LUNA. Not only that, they are also working with Interpol to hunt down Do Kwon.

According to a report from Yonhap News, Hong Jin-Pyo, the chief judge in charge of a warrant at Seoul's Southern District Court, canceled an arrest warrant issued for Shin Hyun-seong, co-founder of Terraform Labs, and several other Kwon colleagues.

Hong said he rejected the warrant after questioning the suspects, stating that he did not believe they would try to escape or destroy evidence.

"Considering the attitude towards investigation, circumstances, processes, and content of the statement, it is difficult to see that there is a risk of destroying evidence or escaping outside the scope of exercise of the right to a legitimate defense," said Hong Jin-Pyo, quoted from Yonhap.

Meanwhile, Daily Hodl reported that South Korean prosecutors requested an arrest warrant for Kwon's colleagues, including Shin, claiming that he illegally profited from the sale of the previously published LUNA token after the Terra ecosystem collapsed. However, Shin denied the allegations.

"I left (Terrorform Labs) two years before the collapse of Terra and Luna, and had nothing to do with the collapse," said Daniel Shin, co-founder of Terra and Do Kwon's co-workers.

Shin also serves as CEO of payment platform Chai Corporation and is further accused of leaking customer data from the company to Terra. In November, South Korean authorities confiscated more than $100 million from Shin, claiming that profits were made from LUNA being sold illegally.