The first preliminary hearing for Daniel Shin, the co-founder of Terraform Labs, and seven former employees took place on Monday at the Seoul Southern District Court. However, to the surprise of many, Shin himself was conspicuously absent from the proceedings, as reported by News 1.
Forkast, a leading media outlet, had previously noted that Shin, who faced multiple charges including fraud since April, failed to appear at the court in Seoul. This raised eyebrows and fueled speculation about the co-founder’s whereabouts and intentions.
Back in April, South Korean prosecutors officially leveled accusations against Shin and nine others, primarily for violations of capital markets legislation. The charges came after an extensive investigation into Terraform Labs’ alleged misconduct, which resulted in the company’s stunning downfall last year, eradicating a staggering $40 billion in investor capital.
According to Chosun Biz, Shin’s legal team requested additional time on Monday to prepare for the upcoming trial, citing the complexity of their client’s case and the need for technological assistance. The court has now set the date for the pre-trial proceedings of the second trial, which will commence on August 28.
Prosecutors from the Seoul Southern District have previously labeled Terra’s algorithmic Terra-Luna stablecoin concept as “fictitious” and destined for failure. They further accused the initiative of inflicting “astronomical damage” on investors while allegedly amassing a profit of $354.3 million.
During the initial stages of the investigation, authorities froze a substantial amount of assets, totaling 247 billion won. However, Shin’s legal team vehemently refuted all charges leveled against their client at the time.
In an unexpected development, the court denied the prosecution’s second request for an arrest warrant against Shin in May, ruling that he did not pose a flight risk or pose a danger of destroying evidence.
Consequently, the absence of Daniel Shin at the preliminary hearing has intensified speculation surrounding his role in the alleged wrongdoing at Terraform Labs. Moreover, the request by Shin’s legal team for additional time to prepare for trial suggests that the case may be more intricate than initially anticipated.
As the second trial’s pre-trial proceedings loom on the horizon, the eyes of the financial world remain fixated on the unfolding legal battle that could shape the future of Terraform Labs and the stability of the cryptocurrency industry as a whole.
