• South Korean prosecutors have renewed efforts to arrest Terraform Labs (TFL) co-founder Daniel Shin on charges of fraud, illegal fundraising, and capital market law violations.
• Previous attempts to arrest Shin failed due to a South Korean court ruling that he did not constitute a flight risk.
• The renewed effort follows the confirmed arrest of Do Kwon in Montenegro while trying to fly to Dubai. The US and South Korea are seeking his extradition.

South Korea Wants Terraform Labs Co-Founder Arrested

Previous Attempts Failed

South Korean prosecutors have renewed efforts to arrest Terraform Labs (TFL) co-founder Daniel Shin on charges of fraud, illegal fundraising, and capital market law violations. Previous attempts to arrest Shin failed due to a South Korean court ruling that he did not constitute a flight risk.

Do Kwon’s Arrest

The renewed effort follows the confirmed arrest of Do Kwon in Montenegro while trying to fly to Dubai. The US and South Korea are seeking his extradition.

Terra Tokens Down

Terra-related tokens have seen their values fall rapidly following Do Kwon’s arrest. According to CryptoSlate data, Terra LUNA is down 2% in the last 24 hours and 11% over the last seven days—falling roughly 30% in the past month. Meanwhile, Terra Classic (LUNC) declined 0.72%.

Unregistered Securities

The U.S. Securities and Exchange Commission (SEC) classified these tokens as unregistered securities in a February court filing.

Shin’s Argument

Shin’s lawyers argued that he had cut ties with Terraform Labs in 2020 and sold 70% of his Luna holdings before the price increase—though still holding some tokens at the time of collapse