Seoul court issues arrest warrant for Do Kwon

A Seoul court issued an arrest warrant for Terraform Labs (TFL) CEO Do Kwon and five other individuals on charges including violations of South Korea’s Capital Markets Act. Bloomberg reports.

According to the prosecution, six of the defendants are in Singapore. Do Kwon did not respond to Bloomberg’s requests.

The collapse of the Terra ecosystem had serious consequences for the digital asset market. The devaluation of LUNA and UST inflicted substantial losses on users of Anchor Protocol.

The incident also affected the solvency of major players in the industry: the crypto-lending platform Celsius was one of the largest holders of UST, and the hedge fund Three Arrows Capital invested about $200 million in LUNA in the February token sale.

The situation around the project drew the attention of regulators in South Korea. The Seoul Southern District Prosecutor’s Office became interested in in TFL’s activities.

Recall that in June 2022 investors accused Terraform Labs and Do Kwon personally of false statements about the stability of UST.

In the same month, the company’s CEO stated that he did not consider himself a fraud. He also denied allegations of withdrawing $2.7 billion from the Terra ecosystem before its collapse.

In July, the Seoul Southern District Prosecutor’s Office conducted searches at the co-founder’s home Daniel Shin and the office of early investor Dunamu & Partners.

Earlier it became known that the people behind the UST stablecoin attracted the interest of the US Securities and Exchange Commission.

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