On Monday, the Seoul Southern District Court conducted the initial preliminary hearing for Daniel Shin, the co-founder of Terraform Labs, along with seven other former Terraform employees, according to reports from Korean media outlet News 1.
According to a report from Forkast, despite being indicted in April on multiple charges, including fraud, Daniel Shin did not appear in person for the hearing conducted in Seoul.
In April, South Korean prosecutors issued formal indictments against Shin and nine other individuals on various charges, which included violations of capital markets law. These indictments came after a comprehensive months-long investigation by prosecutors into the alleged misconduct of Terraform. The repercussions of these actions were significant, resulting in a substantial collapse that eradicated over $40 billion in investor wealth.
According to local news outlet Chosun Biz, Shin’s legal team requested additional time for trial preparation on Monday, emphasizing that the case is not a straightforward criminal trial and necessitates additional technical support. As of now, the second trial preparation date has been scheduled for August 28.
According to the Seoul Southern District Prosecutors’ Office in April, Terra’s algorithmic Terra-Luna stablecoin project was deemed destined to fail and characterized as “fictitious.” The prosecutors further claimed that the project resulted in substantial harm to investors, causing “astronomical damage” and yielding a profit of 463 billion won ($354.3 million.)
In addition, the prosecutors revealed that 247 billion won in assets had been frozen as of April. However, Shin’s legal team refuted all allegations during that period.
In May, the court rejected the prosecutors’ second attempt to obtain an arrest warrant for Shin, stating that there was no significant likelihood of evidence destruction or flight risk on his part.
Also Read: Montenegro Court Orders 4 Months Jail To Terra CEO Do Kwon
