South Korean Court Issues Arrest Warrant Against Terraform Labs Co-Founder Do Kwon
The mandate comes four months after the collapse of the Earth ecosystem and includes five other people connected to the case.
Ecosystem founder Terraform Labs Do Kwon received an arrest warrant issued by a Seoul court for illegal activities related to the collapse of the UST stablecoin and for other financial crimes.
According to Bloomberg News, the arrest warrant includes five other people connected to the case who allegedly violated the Capital Markets Act which regulates the capital market, the issuance of securities and monitors its transactions, as well as supervising authorized persons authorized by CMA.
The mandate comes four months after the collapse of the Earth ecosystem which sent $ 40 billion and its algorithmic stablecoin (UST) up in smoke. It was the first piece of the cryptocurrency market crash – the so-called “cryptocurrency winter” – that led cryptocurrency lending platform Celsius Network, cryptocurrency broker Voyager Digital and hedge fund Three Arrows Capital to bankruptcy.
Terra Luna lost 99% of its value in May, falling from a high of over $100 (£87) to $0.09, followed by the collapse of its sister token, TerraUSD. The crash triggered a sell-off in major cryptocurrencies such as Bitcoin, Ethereum and Tether.
According to media reports, Kwon is believed to be in Singapore and claimed to have “never been in touch with the investigators”.