Daniel Shin Refutes Allegations Against Him
The co-founder of Terraform Labs, Daniel Shin, has firmly denied any involvement in the collapse of the Terra Network. He has pointed fingers at former CEO Do Kwon, blaming his poor policies for the downfall of the company. Despite leaving the company three years ago, Shin has been charged by South Korean authorities due to his affiliation with the network. However, he insists on his innocence, emphasizing that he had already exited the company before the infamous incident.
Shin Hyun-Seong, represented by his lawyers at the Criminal Agreement Division 14 of the Seoul Southern District Court, stated that he parted ways with Do Kwon for business purposes in 2022, two years before the collapse occurred.
Broader Issues in the Crypto Community
The collapse of Terra Network has sparked discussions within the crypto community regarding the impact of executive decisions and regulatory scrutiny on such incidents. Many believe that poor executive decisions, combined with tight regulations and wider market downturns, contribute significantly to crypto crashes.
Anchor Protocol, a lending platform on the Terra Network that allowed users to earn up to 20% on their deposits and borrow against their holdings, also experienced a drastic decline alongside user assets.
“Crypto crashes are often a result of a combination of factors, including poor executive decisions, regulatory scrutiny, and market fluctuations,” says an anonymous member of the crypto community.
The Legal Battle
The prosecution has alleged that Daniel Shin profited billions of won by issuing tokens to investors while being aware of the subsequent collapse of the platform. However, Shin’s lawyer argues that the authorities based their prosecution on regulatory scrutiny, claiming that the Terra project was deemed impossible due to regulations. He further emphasized that no legislation prohibited the development of virtual asset payment services, and thus, no laws were violated.
In a separate legal battle, former CEO Do Kwon is currently jailed in Montenegro for falsifying documents and may potentially face extradition to the United States or South Korea. He is also facing a lawsuit filed by the US Securities and Exchange Commission (SEC), alleging that Terra-linked assets are securities. Do Kwon’s legal representatives argue that the SEC lacks evidence to support the charges and have requested the court to dismiss the entire suit.
