South Korean court issues arrest warrant for Terraform Labs founder Do Kwon

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A court in Seoul has issued an arrest warrant for Terraform Labs (TFL) CEO Do Kwon and five others on charges including violations of South Korea’s capital markets laws. Writes about it Bloomberg.

According to the prosecutor’s office, six defendants are in Singapore. Do Kwon did not respond to a query from the outlet.

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The collapse of the Terra ecosystem had serious implications for the digital asset market. The depreciation of LUNA and UST has caused significant damage to Anchor Protocol users.

The incident also affected the solvency of major industry players: crypto lending platform Celsius was one of the largest holders of UST, and hedge fund Three Arrows Capital invested about $200 million in LUNA as part of the February token sale.

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The situation around the project has attracted the attention of South Korean regulators. The Seoul Southern District Prosecutor’s Office also became interested in the activities of the TFL.

Recall that in June 2022, investors accused Terraform Labs and Kwon personally of making false statements regarding the stability of the UST.

In the same month, the company’s CEO said that he did not consider himself a fraud. He also denied accusations of withdrawing $2.7 billion from the Terra ecosystem before its collapse.

In July, the Seoul Southern District Attorney’s Office raided the home of TFL co-founder Daniel Shin and the office of early investor Dunamu & Partners.

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Source: Cryptocurrency

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