Terra Co-Founder Do Kwon Gets Arrest Warrant For Stablecoin’s Fall

A South Korean court issued a warrant of arrest for Do Kwon, co-founder of the defunct Terraform Labs. The crypto trader, along with five other individuals, is being charged with violation of the country’s Capital Markets Act.

The warrant, as told by the Supreme Prosecutors’ Office to Bloomberg News, comes after the firm’s stablecoin TerraUSD fell below its dollar peg and its LUNA coin crashed in value–overall losing around US$40 billion in the total Terra ecosystem. The collapse caused a wave of devaluation among leading crypto platforms like Voyager Digital, Celsius, and Three Arrows Capital.

Some reports say that Do allegedly cashed out US$80 million each month leading up to the Terra crash.

About a month after the crash, Terra attempted to revive its blockchain by introducing Terra 2.0. It still uses the Luna coin–now called Luna Classic–and has rebranded the newly issued coins as Luna.

Following the news, Luna investors rushed to protect the digital asset, distancing the coin from the arrest warrant issuance for Do.

Shortly after the legal action made the headlines, Luna’s price dropped a third of its value.

However, another related coin made gains.


Information for this briefing was found via Coindesk and the other sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Stablecoin Crisis: Terra Loses USD Peg, Crashes Below 30 Cents

Cryptocurrency markets were sent into distress over the past several days, after stablecoin Terra lost...

Thursday, May 12, 2022, 10:04:00 AM

Kwonzi Scheme 2: Do Kwon Gets Indicted For Fraud As Interpol Confirms His Arrest

Do Kwon, the crypto tycoon behind the high-yielding stablecoin TerraUSD and its companion token Luna,...

Friday, March 24, 2023, 11:20:00 AM

Do Kwon To Be Extradited To US From Montenegro

Things aren’t going in Do Kwon’s favor this year. After the Terraform Labs co-founder spent...

Thursday, December 7, 2023, 12:36:38 PM

Terra 2.0: The Blockchain That Lost US$60 Billion Is Back, Loses 68% On First Day

When someone causes investors to lose up to US$60 billion, you’d expect authorities to put...

Monday, May 30, 2022, 11:37:00 AM

South Korea Asks To Put Terra Co-Founder On Red Notice, Do Kwon Says He’s “Not On The Run”

South Korean authorities have asked Interpol to put Do Kwon, co-founder of the defunct Terraform...

Monday, September 19, 2022, 10:51:00 AM