A court located in Seoul, South Korea issued an arrest warrant for Kwon and five other people who are presently in Singapore.
While the LUNC community is celebrating the potential comeback for the Terra Luna Classic (LUNC) token, the founder of the Terraform Labs, Do Kwon, is now facing a warrant of arrest from South Korean authorities.
According to reports, a court in Seoul issued an arrest warrant for Kwon, who is currently in Singapore, and five others. Prosecutors in South Korea said Terra’s founder is accused of violating the country’s capital markets law.
In May, what the Terra community initially suspected as a FUD attack turned into one of the most devastating markets crashes in cryptocurrency history, causing investors to lose millions in Terra USD (UST) assets, now renamed Terra Classic USD (USTC). – and Terra (LUNA), which was also renamed Terra Luna Classic (LUNC). The UST stablecoin started to drift away from its dollar peg, hitting an all-time low of $0.006 in June.
Beyond UST, LUNA, which peaked at $119.18 in April, fell to a low of $0.0000009, prompting suicide hotlines in the project’s Reddit community.
The Terra crash also affected various Decentralized Finance (DeFi) Protocols, leading to 80% or more crashes for projects related to stablecoins.
On August 17, Kwan hired lawyers from a South Korean law firm, just a few days after saying that the authorities had still not contacted him. According to the report, the founder of Terra submitted a letter of appointment to the department responsible for investigating the collapse of Terra.
Terra’s founder also broke his silence on August 16 to clear his name of various allegations. However, despite Kwon’s efforts, community members criticized Terra’s CEO, comparing his situation to the creator of Tornado Cash, who was arrested for writing a privacy code.
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