South Korea issues arrest warrant for Do Kwon

 The Seoul Court issued an arrest warrant for Terraform Labs CEO Do Kwon and five others to investigate the Luna cryptocurrency disaster.


ccording to the Seoul court's prosecutor's office on September 14, there are six people on the arrest list for violating national capital market rules. These people are currently believed to be in Singapore, where Terraform Labs is headquartered. The move is intended to shed light on the issues surrounding the demise of two tokens in the Terra ecosystem, Luna and stablecoin UST, a source said.


Terraform Labs CEO Do Kwon. Photo: Bloomberg
Terraform Labs CEO Do Kwon. Photo: Bloomberg

In May, the crypto community witnessed one of the biggest disasters in history, when both the Luna and UST coins lost almost all of their value. Information collected by Digital Today (Korea) from the Supreme Court office of this country shows that Terraform Labs decided to dissolve the Korean branch after a board meeting from April 30. This is considered unusual behavior right before the Luna incident took place.

The Luna crash then triggered a series of investigations in both the US and South Korea. In July, South Korean prosecutors raided the home of Daniel Shin, co-founder of Terraform Labs, to gather evidence. At the same time, company employees are also not allowed to leave the country until the investigation is complete.

Do Kwon and representatives of Terraform Labs were not immediately available for comment.

In mid-August, Kwon spoke up, denying the allegations related to the collapse, asserting that the Terra project was not a multi-level fraud scheme. He said he also suffered heavy damage and did not know how much he lost. When asked about the possibility of going to prison in the future, Kwon was not too afraid. "Life is long," said the 9x CEO.

Kwon's statement met with strong objections. Many people believe that he is cheating and needs to pay the price, like the developer of Tornado Cash who was recently arrested by the Netherlands on suspicion of being involved in fraud, concealing, abetting money laundering. .
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