Terra LUNA News: Do Kwon Faces Arrest Warrant by South Korean Court

Terra LUNA News: South Korea court has issued an arrest warrant for Terra co-founder Do Kwon, accusing him of violating the nation’s capital market law. 

 

The collapse of Terra ecosystem earlier this year triggered a global cryptocurrency debacle. According to a text message from the prosecutor’s office, the warrant included five additional persons and all six individuals are located in Singapore. Do Kwon didn’t immediately reply to an email seeking comment.

 

Terraform Labs’ algorithmic stablecoin UST and its sister token LUNA imploded dramatically in May this year, resulting in the wipeout of at least $40 billion of investors’ wealth.

 

The collapse of the Terra ecosystem also had a massive impact on the broader crypto market as the price of Bitcoin plummeted from $40,000 at the beginning of May to $27,000 a mere two fortnights later.

 

The ensuing crypto rout also saw several high-profile cryptocurrency lending firms and brokers, including Celsius, Three Arrows Capital (3AC), and Voyager Digital, go bankrupt, bringing the market further down.

 

In July, South Korean prosecutors raided the home of Terraform Labs co-founder Daniel Shin as part of a probe into allegations of illegal activity behind Terra’s collapse.

 

Authorities also said that Kwon needs to notify them when he returns to the country.

 

A class-action lawsuit was also brought against Kwon and Terraform Labs in June in the U.S. District Court in Northern California.

 

Despite an extensive investigation into the Terra collapse, Kwon denies allegations that the project was a “fraud.” He also claims that he personally lost almost all of his net worth in the Terra collapse.

 

Kwon said in an interview last month that South Korean prosecutors hadn’t been in contact with him and he hasn’t been charged with anything.

 

Do Kwon also reiterated his commitment to the Terra ecosystem recovery and its relaunched Terra LUNA token (also know as LUNA 2.0), which has fallen 16.7% in the past hour.

 

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