A court in South Korea has released a warrant for the arrest of Terraform Labs CEO Do Kwon. The court has taken this decision 4 months later than the Terra ecosystem’s collapse along with that of its algorithmic stablecoin called TerraUSD and the local token LUNA. The respective crash resulted in the drainage of a valuation of up to $40B. A newspaper from South Korea, Chosun Ilbo, was the initial to report this news.
A Court in South Korea Releases Warrant for Arresting Do Kown
The issuance of the arrest warrant was carried out by two prominent agencies. One of these was the Seoul District Prosecutors’ Office-based Joint Investigation Team on Financial Securities Crimes (which was led on the behalf of a director called Dan Sung-han). The other one was the Financial Investigation Division 2 (having Chae Hee-man as the chief prosecutor leading it). At present, Do Kwon is reportedly residing in Singapore.
The report also mentioned the names of the other people against whom the authorities have released the arrest warrants. They are the founder of Terraform Labs – Nicholas Platias – and another employee named Han Mo. The authorities have charged them with the infringement of the Capital Markets Act. The report moved on to point out that the validity of the warrant is till 1 year. The prosecutors are assisting to operate with Interpol and making efforts to carry out the arrests.
The position of TerraUSD is that of the 3rd biggest stablecoin in terms of issuance. It witnessed a de-pegging from the United States dollar in this year’s May. While trying to revive the peg, the Luna Foundation Guard (an associated organization) sold several billion dollars worth of Bitcoin (BTC) and issued extraordinary volumes of LUNA (the local token of Terra) as a result.
Nonetheless, nothing positive was seen despite all these efforts. Both TerraUSD and LUNA’s prices plummeted near to nothing. In this respect, Terra froze the blockchain a couple of times and the investors bore significant losses in return. During the months after the collapse of LUNA and Terra, Do Kwon suggested a risky strategy to reconstruct the ecosystem of Terra with its local currency’s latest version.
Terra Founder Claims He is a Victim
In an interview, that took place in August, the Terra founder asserted that the investigative agencies of South Korea started delving into the crash of the ecosystem of his platform and none of them went to him. In his words, the reports brought to the front that the crypto exchanges had been raided by the investigators to investigate the matter.
Kwon asserted in one of his interviews that he considers himself to be among those who have been victimized by the crash. He added that the losses were much larger and they have put a substantial emotional impact on him and the consumers. He expressed that he felt remorseful for the people whose life savings were drained due to the incident and emphasized that the project was his own life however he lost it.
