South Korea Issues Arrest Warrant against Terra Co-Founder Do Kwon

<p>A South Koren court has issued an arrest warrant against Do Kwon, the co-founder of collapsed stablecoin issuer <a href=”https://www.financemagnates.com/cryptocurrency/terra-luna-how-these-7-wallets-brought-the-ecosystem-to-its-knees/” target=”_blank”>Terraform Labs</a> that rattled the crypto industry earlier this year, as announced by the country’s Financial Crimes Unit of the Supreme Prosecutors Office.</p><p>The warrant also names five others, according to Bloomberg, for the alleged violation of the South Korean capital markets law. However, the identity of five others is unknown yet.</p><p>The South Korean prosecutor’s office further said that all of the six individuals are presently in Singapore. Kwon earlier said that he is cooperating with the investigation. However, he did not release any official statement after the arrest warrant.</p><p>A $40 Billion Collapse</p><p>The arrest warrant came four months after the promising <a href=”https://www.financemagnates.com/terms/s/stablecoin/” target=”_blank” id=”e84b040e-4d12-499b-99bf-8ba75ea058ca_2″ class=”terms__main-term”>stablecoin</a> project collapses, bringing down the $40 billion Terra ecosystem. Kwon was also the primary developer of the project.</p><p>The South Korean authorities raided the house of Terraform Labs co-founder Daniel Shin in July. That was a part of the probe into the establishing criminal activities behind the Terra collapse.</p><p>The collapse of Terraform Labs also triggered a series of other fallouts in the cryptocurrency industry. It is also believed to have started the ongoing so-called “crypto winter.”</p><p>The Asian hedge fund, T<a href=”https://www.financemagnates.com/cryptocurrency/three-arrow-capital-founders-finally-speak-up-mull-over-move-to-dubai/” target=”_blank”>hree Arrows Capital</a>, was the latest to file for <a href=”https://www.financemagnates.com/terms/b/bankruptcy/” target=”_blank” id=”41b3ef0d-d805-441d-8443-121890264e94_1″ class=”terms__secondary-term”>bankruptcy</a> due to its prolonged exposure to the Terra ecosystem. Companies like Celsius Network and Voyager Digital also became insolvent.</p><p>The collapse of Terra also prompted regulators to scrutinize stablecoins, which, on the surface, are immune to the wild volatility of the cryptocurrency markets.</p><p>Reports of the arrest warrant also impacted <a href=”https://www.financemagnates.com/cryptocurrency/news/terras-ambitious-luna-20-plunges-70-in-24-hours/” target=”_blank”>LUNA</a>, the new token of the revived ecosystem. The price of the token plummeted by 35 percent in the last few hours, as of press time.</p>

This article was written by Arnab Shome at www.financemagnates.com.