South Korean prosecutors investigating the collapse of Terra-Luna are mulling another request for the issuance of an arrest warrant for Terraform Labs Pte. Ltd., cofounder Daniel Shin and seven others, after the local court dismissed an initial request last Friday.
“It is difficult to accept that the [court] dismissed the warrant to guarantee the rights of suspects who took astronomical amounts of profits while acknowledging the heavy burden of the crime against innocent investors,” Choi Sung-kook, prosecutor at Seoul Southern District Prosecutors’ Office told Forkast via text message.
On Dec. 2, Seoul Southern District Court’s presiding judge of warrants Hong Jin-pyo reviewed the arrest warrant on eight Terra associates that the prosecutors requested on Nov. 29.
Hong dismissed the request the next day, reportedly because he saw low risk of the accused fleeing or destroying evidence considering how they have cooperated with the investigation so far.
Prosecutors will examine the rationale behind the dismissal and determine whether to request the warrant again, Choi told Forkast.
South Korean prosecutors want to charge Shin and seven other early investors and former engineers of Terra with fraud, violation of the Capital Markets Act and the Electronic Financial Transactions Act, and breach of duty.
(By DANNY PARK)
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