- A South Korean court issues an arrest warrant against Do Kwon, the founder of Terraform Labs.
- Terra’s stablecoin deepened to $0.006218, while its counterpart crypto LUNA dropped by 1,634% to hit $0.00001675.
- Previously, hacktivist group Anonymous issued stern statements against the Terra LUNA founder, promising to bring him to justice.
Terraform Labs creator Do Kwon is now facing an arrest warrant issued by a judge in South Korea following the collapse of Terra LUNA projects earlier this year.
This development came early today in a report by Bloomberg, which noted that Kwon and five others were declared wanted by the Seoul court on suspicion of breaking the country’s capital markets legislation.
Kwon found himself in the epicenter of crypto’s largest blowups after Terra’s stablecoin (UST) deepened to $0.006218, while its counterpart crypto LUNA dropped by 1,634% to hit $0.00001675.
The implosion of the algorithmic stablecoin UST and LUNA in May shook confidence in the digital asset market, provoking a worldwide crypto meltdown that is yet to recover. According to reports, investors lost over $60 billion from the crash.
Terra’s episodes sparked a landscape of regulatory oversight of stablecoins in both South Korea and the United States. Stablecoins are a typical vehicle investors use to park their funds from more volatile coins.
In June, notorious Hacktivist group Anonymous issued stern statements against Do Kwon, promising to bring him to justice. The group noted that sometimes businesses or projects might fail, but Terra’s case was deliberate because, according to them, Kwon had “bad intentions” at the start.
As the investigation into the alleged illegal practices that led to the downfall of TerraUSD developed, prosecutors in July got a warrant to search the home of Daniel Shin, a founding member of Terraform Labs. Additionally, Shin was banned from leaving South Korea.