Terraform Labs co-founder Daniel Shin appeared in court Friday, at a hearing to decide whether he should be arrested for allegedly extracting illegal profits prior to the collapse of the Terra ecosystem. Per the Korea Times, Shin stands accused of selling a $105 million hoard of Terra’s LUNA tokens at the cryptocurrency’s peak price; the tokens had been pre-issued without regular investors being made aware of the fact. The court will decide whether to approve Shin’s arrest either Friday or Saturday, with prosecutors arguing that Terra’s LUNA cryptocurrency constitutes a financial investment security. Shin claimed that more than 70% of his LUNA holdings were sold prior to the price surge, and that he still held a significant amount at the time of the cryptocurrency’s crash. Along with Shin, seven other early investors and Terraform Labs engineers are also named in the warrant. According to local news outlet JTBC, one of those accused worked for Kernel Labs, a firm set up by former Terra developers.
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