Home » South Korea Confirms TerraForm Labs Co-Founder Trial Date

South Korea Confirms TerraForm Labs Co-Founder Trial Date

The court hearing is set for late May, unexpectedly changing plans for the South Korean entrepreneur.

by Tadas Klimasevskis. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: May 11, 2023 │ 4:00 PM GMT

Daniel Shin looking confused in the courtroom. — Daniel Shin looking confused in a court room.

Founded in 2018, TerraForm Labs faces legal consequences due to the UST crash.
TerraForm Labs co-founder Daniel Shin is ordered to arrive at court in late May.
After two attempts, prosecutors still failed to get an arrest warrant on Mr. Shin.

South Korean authorities are continuing to investigate last year’s Terra Luna fiasco. Daniel Shin of TerraForm Labs is scheduled to arrive for the first hearing on May 26th, 2023.

This has been revealed by the Seoul Southern District Court, which also charged seven other co-founders of TerraForm Labs, including the notorious crypto fugitive Do Kwon. Meanwhile, Kwon is in a Montenegrin jail, awaiting repatriation back to South Korea.

📅 Plans have changed a little. #Terra co-founder #DanielShin will appear before the Seoul Southern District Court on May 26.

Meanwhile, South Korea is preparing to extradite #DoKwon. https://t.co/HiMo2DpYH9
— Gagarin News 🇺🇦 (@NewsGagarin) May 11, 2023

Co-Founder Prepares All-Star Lawyer Team

Daniel Shin’s defense team will consist of top-notch lawyers. According to Yonhap News, the former CEO of Chai Corporation has hired well-known ex-judges and prosecutors specializing in Capital Market law.

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One attorney team member, Park Hyung-Cheol, previously worked as an anti-corruption secretary at the Blue House. However, this shouldn’t be surprising – crypto entrepreneur Daniel Shin has a well-connected family, including a former Minister of Justice in his grandfather.

Interestingly, the South Korean prosecutors claim that all co-founders of TerraForm Labs used to promote the two coins – Terra (LUNA) and Terra USD (UST) as ‘safe investments,’ knowing that shilling of these ‘securities’ is illegal. However, the defendant’s team is begging to differ that those crypto assets are securities.

Ultimately, the outcome of the infamous TerraForm Labs trial for fraud and market manipulation might set a precedent in crypto-related cases and bring more clarity, as well as serve justice to the numerous harmed investors.

🔔The co-founder of #Terraform Labs, Daniel Shin, and seven other associates will go on trial for the first time on May 26. He is accused of fraud related to the failure of the Terra-Luna stablecoin and cryptocurrency project. The project resulted in a loss of $40B.
— Granit Academy (We're hiring) (@granitacademy) May 11, 2023

On The Flipside

Neither Daniel Shin nor any of the seven co-founders were arrested despite the indictment.

Why You Should Care

The Terra (LUNA) and Terra (UST) crash in May 2022 wiped out over $40 billion in crypto assets and is linked to the demise of multiple previously-successful crypto hedge funds.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author

Tadas Klimasevskis

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.