The arrest warrant for Shin Hyun-sung (38), former Chief Executive Officer of Chai Corporation and co-founder of Terraform Labs, the issuer of Terra and Luna, was dismissed.
At around 10:30 a.m. on the 30th, Judge Yoo Hwan-woo, in charge of warrants at the Seoul Southern District Court, held a pre-arrest detention hearing for former CEO Kwon and dismissed the arrest warrant.
The court stated, "It appears that the facts have been substantially established," and "It is expected that the investigation will take a long time due to accomplices located abroad." It added, "Since the main accomplices have been arrested and there is little concern about evidence destruction, and some charges are disputable, it is necessary to exercise the right to defense." The court also found no flight risk concerning former CEO Shin.
After the first arrest warrant for former CEO Shin was dismissed, the prosecution reinforced the grounds for detention and requested a second arrest warrant on the 27th. The prosecution applied charges including fraudulent and unfair trading under the Capital Markets Act, conspiracy regulation violations, 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, bribery in breach of trust, and breach of trust in the course of business.
At the pre-arrest detention hearing that day, Shin, when asked by reporters whether he knew about the possibility of the Terra and Luna crash before issuing them and what he thought about the reapplication for the warrant, replied, "I will tell you later."
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