According to the Financial Crimes Unit at the Supreme Prosecutors Office, a South Korean court issued an arrest warrant for Do Kwon. He is the co-founder and chief executive of Terraform Labs stablecoin issuer Terraform Labs. According to a report, the warrant also includes five other people.
Bloomberg News reported that the warrant also included five additional people, citing a text from the prosecutor’s bureau.
According to the report, they were charged with violating Capital Markets Act.
Terra Luna’s collapse led to other crypto firms filing for bankruptcy
This warrant is issued four months after the collapse in the Terra ecosystem worth \$40 billion and its algorithmic stablecoins (UST), which was first domino to drop this year’s crypto winter.
As digital assets fell by more than half from their highs, the industry suffered a severe downturn. Companies like Celsius Network and Voyager Digital filed for bankruptcy.
After the Terra ecosystem exposed, Three Arrows Capital, a Singapore-based hedge fund, was forced to file for bankruptcy. Three Arrows’ implosion left a trail that led to destruction and bad debt in the crypto industry. Creditors owed billions.
Kwon stated maintained in his public interview last month that he was cooperating with authorities.
CoinDesk did not receive a response from Terra immediately to our request for comment.
Kwon reiterated his support for the Terra ecosystem, including its relaunched Terra token (LUNA). Over the last hour, the token has dropped 16.7%.