Do Kwon: South Korean Court Issues Arrest Warrant For Terra Co-Founder Do Kwon

A South Korean court has issued an arrest warrant for Do Kwon, the co-founder of the now-defunct stablecoin issuer Terraform Labs according to Bloomberg.

iexclusivenews reports that the court in Seoul issued a warrant for Do Kwon and five others, according to a text message from the prosecutor’s office, the report added.

The unraveling of the Terra platform in May included the collapse of the TerraUSD stablecoin, shaking faith in the digital-asset sector, which has yet to recover much of the losses.

Do Kwon’s followers dubbed themselves “Lunatics” after Luna, another coin that was part of the ecosystem he helped to construct. When TerraUSD, also known as UST, fell from its dollar peg and brought down the ecosystem he had established, he found himself at the center of one of crypto’s largest blowups.

The warrant comes a few months after the Terra ecosystem and its stablecoin (UST) collapsed, which led to a massive ripple effect in the crypto markets.

The collapse also led to several countries looking at stablecoin regulations and several bankruptcies including high-profile crypto hedge fund Three Arrows Capital (3AC).

In his first public interview last month, Kwon had maintained that he is co-operating with the authorities.

[the_ad id=”41670″]

Prosecutors raided the house of Terraform Labs co-founder Daniel Shin in July, as the investigation into claims of unlawful activities behind the TerraUSD crash deepened.

Do Kwon has stated that he will cooperate when the time comes. “Life is long,” Kwon stated in an interview with crypto media startup Coinage, referring to the possibility of jail time.

Kwon also reiterated his committed to the Terra ecosystem and its re-launched Terra token (LUNA). The token has slumped by 16.7% over the

Do Kwon didn’t immediately reply to an email seeking comment.