South Korea issues arrest warrant for Terra Founder Do Kwon

A court located in Seoul, South Korea issued a warrant for the arrest of Kwon and five other people who are currently in Singapore.

While the LUNC community rejoices because of a potential comeback for the Terra Luna Classic (LUNC) token, the founder of the Terraform Labs, Do Kwon, is now facing a warrant of arrest from South Korean authorities. 

A court located in Seoul reportedly issued a warrant of arrest for Kwon and five other people who are all currently located in Singapore. According to the prosecutor’s office in South Korea, the Terra founder is facing allegations of violating the country’s capital markets law

In May, what the Terra community first suspected to be a FUD attack became one of the most devastating market crashes in crypto history, triggering the loss of millions of assets from investors of Terra USD (UST) — now renamed Terra Classic USD (USTC) — and Terra (LUNA), which is also rebranded to Terra Luna Classic (LUNC). The UST stablecoin started to drift away from its dollar peg, dropping to an all-time low of $0.006 in June.

Apart from UST, LUNA, an asset that once reached its peak at $119.18 in April dropped massively to an all-time low of $0.0000009, causing suicide hotlines to be pinned on the project’s Reddit community.

The Terra crash also affected various decentralized finance (DeFi) protocols, leading to an 80% and above decline for projects that were associated with the stablecoin.

Related: Exchanges criticized for ‘nothingburger PR’ posts on upcoming LUNC tax burn

On Aug. 17, Kwon hired attorneys from a law firm based in South Korea just a few days after saying that the authorities have not yet reached out to him. According to a report, the Terra founder delivered a letter of appointment to the department responsible for investigating the Terra collapse.

The Terra founder also broke his silence on Aug. 16 in an attempt to clear his name from various allegations. However, despite Kwon’s efforts, community members still criticized the Terra CEO, comparing his situation to the creator of Tornado Cash, who was arrested for writing a privacy code.

Related Posts

High Profile NFT Collection Moved from 3AC Wallet Amid Bankruptcy Proceedings

Last year, a non-fungible token (NFT) fund created by Three Arrows Capital co-founders has now seen many of its digital art assets moved to another wallet. On…

AI Music: Bots Can Now Write Songs, and Produced a New Kurt Cobain Hit

AI Music is now part of the cultural landscape, whether we like it or not. Artificial Intelligence (AI) can now write lyrics, music and even produce a…

Insolvency not in ‘Nexo’s reality,’ says co-founder during AMA

Co-founder Kalin Metodiev stated that comparisons between Celsius, Voyager and Nexo are “very far from reality” and that the firm is focused on building in a sustainable…

Ethereum Name Service: Here Are the 5 Most Expensive ENS Domains

Ethereum Name Service (ENS) domains have seen a sharp rise in interest over the last six months. New registrations hit 437,000 in September alone. On secondary markets…

Anchorage co-founder sees ‘tons of opportunity’ as it expands into Asia

Anchorage Digital has marked its plans for expansion into the Asian crypto market, with co-founder Diogo Mónica noting that Singapore is just a starting point. Anchorage Digital…

Federal regulators are preparing to pass judgment on Ethereum

The Securities and Exchange Commission is moving to take action against Ethereum that reaches far beyond America’s borders. Are regulators with the U.S. Securities and Exchange Commission…

Generated by Feedzy