A local South Korean court rejected the prosecutor’s request to issue an arrest warrant for Terraform Labs co-founder Shin Hyun-Seong, also known as Daniel Shin. This was the second attempt by the South Korean authorities to reign in Shin after the recent arrest of Do Kwon, the other co-founder of Terra.
On March 23, Kwon was arrested at the Podgorica airport in Montenegro while trying to use false documents to fly abroad. The Seoul Southern District Prosecutor’s Office took advantage of this situation and, on March 27, requested an arrest warrant for Shin, citing his involvement in collecting illicit proceeds from the sales of Terra (LUNA) and TerraUSD (UST).
However, the Seoul Southern District Court rejected the request, citing unconfirmed allegations and the improbability that Shin would be a flight risk or destroy evidence. according to local media Yonhap.
Shin is currently facing multiple charges of fraud, specifically in relation to the alleged concealment of the risks associated with investing in Terraform Labs’ internal tokens.
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Following Kwon’s arrest in Montenegro, authorities in both the United States and South Korea have attempted to extradite the businessman.
As Cointelegraph reported, Montenegrin Justice Minister Marko Kovač said the United States made diplomatic efforts to demand Kwon’s handover, while South Korean officials requested his extradition.
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“In the event that we receive multiple extradition requests, I would like to say that determining which state they will be extradited to is based on various factors such as the seriousness of the crime committed, the place and time the crime was committed. , the order in which we received the extradition request and several other factors,” Kovač said through an interpreter.
