A South Korean district court has rejected prosecutors' request for an arrest warrant for Terraform Labs co-founder Shin Hyun-Seong, also known as Daniel Shin. This is the second attempt by South Korean authorities to rein in Shin, following the recent arrest of Do Kwon, another Terra co-founder.
On March 23, Kwon was arrested at Podgorica Airport in Montenegro when he tried to fly abroad using false documents. Taking advantage of the situation, the Seoul Southern District Prosecutors Office requested an arrest warrant for Shin on March 27 for his involvement in cashing out illegal profits from the sale of Terra (LUNA) and TerraUSD (UST).
However, the Southern District Court in Seoul rejected the request, citing the unsubstantiated allegations and the fact that Shin was unlikely to flee or destroy evidence, local media Yonhap News Agency reported. Shin is currently facing multiple charges of fraud, in particular for allegedly hiding risks associated with Terraform Labs investing in internal tokens.
After Kwon's arrest in Montenegro, both US and South Korean authorities attempted to extradite the entrepreneur. Montenegro’s Justice Minister Marko Kovač said the U.S. had used diplomatic efforts to demand Kwon’s handover, while South Korean officials had demanded his extradition.
"While we have received multiple extradition requests, I would say that the decision to which country to extradite them is based on several factors, such as the gravity of the crime, the location and time of the crime. , we receive extradition requests order and several other factors," Kovacs said through a translator.
