A report by South Korean newswire service Yonhap has it that prosecutors are seeking an arrest warrant for Daniel Shin, co-founder of Terraform Labs.
According to the report, prosecutors claim Shin made illicit profits as he sold $105 million of LUNA at a market high without informing investors.
Shin is also being charged with violating the Electronic Financial Transaction Act for using customer data from Fintech firm Chai, a separate firm he managed, to promote Luna.
Shin left Terraform Labs in March 2020 and has previously also denied selling LUNA at the top.
Chai says that it stores all customer data following local privacy laws. Authorities raided the Chai office in mid-November.
An arrest warrant has also been issued for Do Kwon, and his location is currently unknown while key personnel and former employees from Terraform Labs have been banned from leaving the country.