PANews reported on November 30 that on the afternoon of November 29, the Financial and Securities Crime Joint Investigation Team and the Second Financial Investigation Section of the Southern District Prosecutor’s Office in Seoul, South Korea, were charged with violating the "Aggravated Punishment Act for Specific Economic Crimes" for fraud and malfeasance, and violating the "Capital Market" Act, violation of the Unlawful Credit Act Restriction Act, etc., a prior arrest warrant was applied for eight people, including Daniel Shin, co-founder of Terraform Labs. Daniel Shin and other four people were the initial investors of Terra and Luna, and the remaining four people were core developers of Terra and Luna technology. These people are currently stranded in South Korea.

Among them, Daniel Shin was accused of holding Luna issued before the company was established and selling it when the price skyrocketed, thereby obtaining improper profits worth 140 billion won. Prosecutors believe that Luna and other cryptocurrencies have securities attributes and have filed criminal charges such as fraud and illegal transactions against former CEO Daniel Shin under the Capital Markets Act. Daniel Shin is also accused of leaking customer information held by Chai Corporation to independent entities such as Terraform Labs (in violation of the Electronic Financial Transactions Act). Daniel Shin said in a statement that he will explain and illustrate these charges in court. In his statement, he said: "I left the company two years ago and had nothing to do with the collapse of Terra and Luna. I voluntarily returned to my country during the incident and cooperated with the investigation to find out the truth.

It is reported that Daniel Shin's Chai Corporation, which cooperated with Terraform Labs in 2019, was accused of violating capital market rules in past transactions with Terra. Earlier on November 17, a South Korean court froze $104 million in assets of Terra co-founder Daniel Shin.