Shin Hyun-sung of the 'Terra·Luna Incident' Appears for Second Warrant Hearing

Shin Hyun-sung (38), former Chief Executive Officer of Chai Corporation and co-founder of Terraform Labs, the issuer of Terra and Luna, appeared for a pre-arrest detention hearing on the 30th.

At 10:11 a.m. on the 30th, Shin Hyun-sung, former Chief Executive Officer of Chai Corporation, who appeared for the warrant hearing at the Seoul Southern District Court, is getting off the emergency transport vehicle and heading to the courtroom. Photo by Hwang Seo-yul chestnut@

At 10:30 a.m. on the same day, Judge Yoo Hwan-woo, in charge of warrants at the Seoul Southern District Court, began the detention hearing for Shin. Shin arrived at the court around 10:12 a.m. in an emergency transport vehicle and, when asked by reporters whether he knew about the possibility of Terra and Luna's crash before issuing them and what he thought about the reapplication for the warrant, he only said, "I will explain later," before heading into the courtroom.

The prosecution has charged Shin with violations including fraudulent and unfair trading under the Capital Markets Act, conspiracy regulations, fraud and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, violations of the Electronic Financial Transactions Act, violations of the Act on Reporting and Using Specified Financial Transaction Information, mediation of breach of trust, and breach of trust in the course of business.

Shin is accused of falsely promoting Terra and Luna-based payment services to attract approximately 140 billion KRW in investments. He is also suspected of knowing the possibility of Terra and Luna's crash but hiding this information while continuing to issue the coins and selling the coins he held at peak prices to gain illicit profits.

Additionally, he faces allegations of leaking customer information held by Chai Corporation to Terraform Labs and other companies, as well as requesting Yoo Mo (38), former CEO of the social commerce company TMON, to introduce and promote Terra as a simple payment method.

Shin's side responded to the reapplication for the arrest warrant by stating, "It is difficult to accept since we have cooperated with summons and investigations."

The Joint Investigation Team for Financial and Securities Crimes at the Seoul Southern District Prosecutors' Office (led by Dan Seong-han) filed a second arrest warrant on the 27th, supplementing the reasons for Shin's detention.

Previously, the court dismissed the first arrest warrant on December 3 of last year during the initial detention hearing, stating that there was little risk of evidence destruction or flight.