A South Korean court has issued an arrest warrant for Do Kwon, the co-founder of now-defunct stablecoin issuer Terraform Labs, according to Bloomberg.
The Seoul court issued arrest warrants for Do Kwon and five others, according to a briefing from the prosecutor’s office, the report added. According to the Chosun Ilbo, founding member of Terraform Labs Nicholas Platias and employee Han Mo are also on the arrest list, with the main charge against them being violating the Capital Markets Act.
According to reports, since Do Kwon is currently in Singapore, South Korean prosecutors are planning to issue a “red notice” against him through Interpol and revoke his passport, so that Do Kwon will be arrested.
The Korea Herald reported earlier that South Korean prosecutors are considering whether LUNA should be considered a security. Once LUNA is identified as a security, the token developers and co-conspirators will be able to add to the original fraud charges. May face charges of violating the Capital Markets Act.
According to CoinGecko market data, after the above news came out, LUNA fell 9.1% in one hour and 28.7% in the past 24 hours, and is now at $3.06; LUNC fell 2.9% in one hour and 7.7% in the past 24 hours. It is currently quoted at $0.00029851.
In May of this year, the market witnessed the collapse of the Terra algorithmic stablecoin UST and its sister coin LUNA, triggering a large-scale liquidation in the cryptocurrency market. Tens of billions of dollars were wiped from the market in just a few days, forcing several cryptocurrency companies. Filed for bankruptcy, including high-profile cryptocurrency hedge fund Three Arrows Capital (3AC).
Since the collapse of the Terra ecosystem, many astonishing inside stories have gradually surfaced, and the founder Do Kwon’s dark history has also come to an end. The Korean authorities have expanded their investigation into whether the crash involved illegal acts.
Blocker previously reported that South Korean prosecutors raided and seized the residence of Daniel Shin, another Terra co-founder, and Do Kwon-related company Kernel Labs in July this year.
Do Kwon also said in an interview with the media last month that he was actively cooperating with authorities in the investigation.