We’ve got some news that’s sure to get your adrenaline pumping. The Seoul Southern District Court held the first preliminary hearing for Terraform Labs co-founder Daniel Shin and seven other former Terraform employees. It’s like a courtroom drama unfolding in the world of crypto.
Shin, indicted in April for several charges, including fraud, did not personally attend the hearing. It’s like the leading actor missing the opening scene of a play. His lawyers requested more time for trial preparation, arguing that the case is not a simple criminal trial and requires more technical support. The second trial preparation date is currently set for August 28.
South Korean prosecutors in April formally indicted Shin and nine others on multiple charges, including violations of capital markets law. This followed prosecutors’ months-long investigation into Terraform’s alleged wrongdoings that caused a dramatic implosion last year, wiping out more than $40 billion in investor wealth. It’s a tale of a meteoric rise followed by a dramatic fall.
In April, the Seoul Southern District Prosecutors’ Office described Terra’s algorithmic Terra-Luna stablecoin project as “fictitious” and bound to fail. The project caused “astronomical damage” for investors and took 463 billion won ($354.3 million) in profit. The authorities had frozen 247 billion won in assets.
