Warrant requested for Daniel Shin following Do Kwon 's arrest

Terraform Labs co-founder Daniel Shin attends a hearing at the Seoul Southern District Court in Yangcheon District, western Seoul in December. [NEWS1]

Prosecutors requested a warrant for the arrest of Daniel Shin, co-founder of failed Terraform Labs, Monday.

The warrant request comes four months after the court dismissed a request for an arrest warrant for Shin in December.

Shin co-founded Terraform Labs with Do Kwon in 2018.

He was arrested on charges of fraud, embezzlement and violations of the Electronic Financial Transaction Act, the prosecution said.

Shin is charged for selling about 140 billion won ($108 million) of TerraUSD and Luna that he knew were worth less than he claimed, according to prosecutors.

These cryptocurrencies wiped out $40 billion in wealth in an implosion last May.

He is also accused of leaking customer information of Chai Corporation, another company he founded, to other firms, including Terraform Labs.

Shin founded Chai, a payment firm, in 2018 and is the former CEO of TMON.

BY JIN MIN-JI [jin.minji@joongang.co.kr]