JUST IN: Terra UST collapse ends in arrest warrant issued for Do Kwon
- A South Korean court has issued an arrest warrant for Do Kwon, the founder of Terraform Labs in connection with the Terra-UST collapse.
- The court has issued a warrant for Kwon and five others on allegations of violating the nation’s capital markets laws.
- Terra Classic LUNC price nosedived 13% overnight, in response to the announcement.
A South Korean court has issued an arrest warrant for Do Kwon and five others in a probe into the $40 billion implosion of LUNA UST. Prosecutors believe that Kwon has violated South Korea’s capital market rules.
Also read: $69 billion wiped out of global crypto market 24 hours before Ethereum Merge
Kwon’s arrest not far, warrant released by South Korean court
Terraform Labs’ LUNA and UST, two sister tokens, imploded dramatically in May 2022. Leading cryptocurrency exchanges Binance and Coinbase delisted the cryptocurrency in the wake of the implosion. Post the revival of LUNA Classic and LUNA, few exchanges have revived limited support for Terra since its comeback.
Investors who suffered losses from the $40 billion market capitalization of Terra that disappeared in less than a week awaited the arrest of Do Kwon. A court in South Korea has issued an arrest warrant for Do Kwon, the founder of Terraform Labs. Investigators probed into the decline of LUNA-UST, Terraform’s sister tokens.
The South Korean court has issued arrest warrants for six people, including Kwon. Prosecutors believe these individuals have violated the nation’s capital market rules. The probe in LUNA-UST started with the implosion of the two tokens. In an interview in August 2022, Kwon said that South Korean prosecutors are yet to contact him and he has not been charged with anything. Law enforcement has barred Terraform Labs employees from leaving the country.
Kwon told the community in a recent interview:
It’s kind of hard to make that decision, because we’ve never been in touch with the investigators. They’ve never charged us with anything.
In July 2022, prosecutors raided the home of Terraform Labs co-founder Daniel Shin as part of the probe into the allegations of illegal activity tied to LUNA-UST’s collapse. Authorities asked Kwon to notify them of his return to the country.
LUNC price nosedived in response to news of Kwon’s arrest
Luna Classic (previously LUNA) suffered a steep decline in response to the news of Do Kwon’s arrest warrant issued by the court. LUNC price yielded 13.7% losses overnight. CryptoEd, a pseudonymous analyst and trader, commented on the LUNC price trend and argued that the altcoin’s rally ended quickly.
LUNC-USDT price chart
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
