Do Kwon Expected to be Arrested, Luna Losses 40%
Authorities from South Korea have issued Do Kwon’s (the CEO and creator of Terraform Labs) arrest warrant, as per several reports across the globe. According to the report of Bloomberg, presently Do Kwon (in reality called Kon Do-hyeong) is in Singapore. Thus, the South Korean authorities may take assistance from Interpol and catch the Terra founder with the help of the officials from Singapore. After the issuance of the warrant, up to forty percent loss has taken place in Terra (LUNA).
Arrest Warrant Issued Against Do Kwon
In May this year, the crypto token LUNA and the algorithmic stablecoin of Terraform Labs (UST) collapsed, igniting a worldwide downfall in the whole crypto industry. As a consequence, the investors lost confidence in the crypto token and the underlying principles responsible for its stability. Coibnase and Binance were the two prominent crypto exchanges that excluded the token from their listings and withdrew their support for the trading pairs thereof. After that up till now, many exchanges have provided limited support for the old token and relaunched it.
Terra stablecoin’s awful crash paved the way toward losses of up to $200B, whereas Terra’s (LUNA) price has declined by approximately eighty percent. In July, the South Korean authorities looked for Daniel Shin’s (a co-founder of Terraform Labs) house as included in their investigation plan. This was done in line with the accusations of the reported illegitimate operations which played an important role in the drop of Terra.
Terraform Labs’ Staff Restricted from Exiting South Korea
Moreover, the officials have mentioned that the Terra founder is directed to inform them of the return thereof to the country. A ban that the officials have placed on the staff of the platform restricts them from exiting the country. Nonetheless, Do Kown appeared in an interview last month and claimed that the prosecutors from South Korea did not communicate with him. The Terra CEO asserted in that interview that he was not going through any allegations.
Several sources specified that a court within the jurisdiction of South Korea issued arrest warrants to target 6 people. The prosecutors are confident that the defendants infringed the country’s capital market-related laws. There are 5 prosecutors on the investigation team. They belong to the Financial and Securities Crime Unit 1 Team as well as the Financial Investigation Division 2 (which operates under the Seoul Southern District Prosecutors’ Office.
