A court in South Korea dismissed the arrest warrants against former Terraform Labs workers, comprising four engineers and three early-stage investors, connected to the collapse of UST and LUNA tokens.
Daniel Shin allegedly ignored warnings from the Financial Supervisory Service and continued telling investors that Terra's stablecoin would debut on e-commerce platforms.
Terra co-founder Shin Hyun-seung denies allegations that he violated the South Korean capital markets law, which led to the freezing of over $100 million worth of funds.
Prosecutors stormed Chai Corporation, the payments technology company founded by Daniel Shin, on the allegations that it misused its customers' personal information without their consent.
Investigators say Daniel Shin breaches South Korean capital market law over allegedly holding a stash of LUNA without disclosing it to investors.
The prosecutors say that the evidence was gleaned from a “messenger conversation” between Do Kwon and an ex-employee of Terraform Labs.
The claimants seek $57 million as damages for losses suffered during the de-pegging of TerraUSD (UST) from the U.S. dollar.
Investors who got rekt after investing in LUNA/UST are now taking it upon themselves to pursue Kwon, who says charges against him are politically motivated.
Yoo Mo was arrested last week on charges of violating the Capital Markets Act as a key member of the Terra group, but a South Korean court has dismissed his arrest.
South Korea's extensive probe into the LUNA and UST meltdown is gaining ground with the arrest of Do Kwon's key aide, Yoo Mo, who is being accused of fraud and inflating token prices using bots.
In a letter to South Korea's National Assembly, Daniel Shin said that local law enforcement agencies are investigating him for his role in Terra's collapse in May, and his testimony could be tainted.
Months of speculation ended as Celsius CEO Alex Mashinsky steps down from his post amidst an ongoing probe, which comes at the heels of the arrest of controversial Terra founder Do Kwon.
