Do Kwon has an arrest warrant issued against him by South Korea
September 14, 2022 10:03 AM
Kwon and five other people are wanted by a court in Singapore on arrest warrants issued by a court in Seoul, South Korea.
Do Kwon, founder of Terraform Labs, is wanted by South Korean authorities as the LUNC community celebrates the possible revival of the Terra Luna Classic (LUNC) token.
Kwon and five others, all currently in Singapore, are wanted on arrest warrants issued by a court in Seoul. The South Korean Prosecutor General's Office claims that Terra's founder broke the country's capital markets law.
What the Terra community at first thought was a FUD attack in May turned out to be one of the worst market crashes in crypto history, wiping out millions of dollars' worth of investments in Terra USD (UST), now known as Terra Classic USD (USTC), and Terra (LUNA), now known as Terra Luna Classic (TLC) (LUNC). The UST stablecoin began to deviate from its dollar peg in June, when it hit a new low of $0.006.
In addition to UST, another asset called LUNA plunged from its April high of $119.18 to a new low of $0.0000009, prompting members of the project's Reddit community to post suicide hotlines.
Many decentralized finance (DeFi) protocols were also negatively impacted by the Terra crash, with some seeing losses of 80% or more on their Terra-related projects.
Kwon retained a South Korean law firm on August 17 after stating only days earlier that he had not heard from the authorities. A letter of appointment from Terra's founder was reportedly delivered to the division looking into the Terra collapse.
On August 16, Terra's founder broke his silence in an effort to defend himself against various accusations. Despite Kwon's best efforts, members of the Terra community have continued to criticize the company's top executive, drawing parallels to the case of the man who created Tornado Cash but was subsequently arrested after he wrote a privacy code.