Terraform co-founder faces trial in South Korea

South Korean authorities indicted Daniel Shin in April on fraud charges

article-image

warat42/Shutterstock modified by Blockworks

share

Terra co-founder Daniel Shin is facing trial in South Korea. A preliminary hearing was held in Seoul on July 10, as reported by South Korea’s News 1. 

Initially, the trial was set to take place on May 26 but was pushed back. Shin is being tried alongside seven former Terraform employees, according to the News 1 report

He was indicted in April on fraud charges and violating capital markets law. Prosecutors announced, at the time, that they had frozen over 246 billion won, or roughly $184 million USD in assets.

According to ChosunBiz, the next trial preparation date is August 28.

Shin, alongside Do Kwon, created Terraform Labs in 2018. The algorithmic stablecoin, TerraUSD, lost its peg to the US dollar in May 2022. As Terra crashed, it helped wipe $80 billion from crypto markets

It took until April 2023 for crypto markets to return to post-Terra collapse levels

Kwon is facing a four-month sentence in Montenegro for falsifying a passport. Both South Korea and the US have pushed to extradite Kwon after he serves his time in Montenegro. 

In early June, local media reported that Do Kwon had been placed in extradition custody as Montenegro mulled South Korea’s extradition request. The request, however, could take up to six months.  

South Korea issued an arrest warrant for Kwon in September, prior to his arrest in Montenegro.  
New York authorities charged Kwon with securities fraud in March, and Kwon also faces charges from the SEC.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).png

Research

Mantle is building a vertically integrated “Blockchain for Banking,” unifying consumer, institutional, and yield products on its modular L2, Mantle Network. Anchored by EigenDA and OP-Stack upgrades, the network sustains strong MNT demand while powering products like UR (smart-money app), MI4 (crypto index fund), mETH (liquid staking), and FBTC (yield-bearing Bitcoin). With Bybit’s distribution reach and growing institutional adoption, Mantle positions itself as a financial hub bridging TradFi and DeFi.

article-image

The World Computer picks up where BTC has left off

article-image

The ECB’s Stablecoin Defense Initiative™ seems doomed to fail

article-image

Developers need “additional robust, nationwide protections from misclassification under securities and commodities laws,” DeFi Education Fund policy lead says

article-image

External Rewards let protocols distribute native token incentives to stakers and node operators

article-image

Several teams in crypto have explored the idea of using futarchy to overhaul DAO governance

article-image

Union Square Ventures leads funding for The Clearing Company, building regulated, onchain prediction markets

by Blockworks /