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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Terra Stablecoin Issuer Allowed Crypto Whales to Cash Out Ahead of Collapse

It appears that last week’s implosion of the Terra blockchain may not have left all...

Tuesday, May 17, 2022, 12:22:00 PM

Terra Blockchain Temporarily Halted Amid Implosion of LUNA, Terra

Evidently, not all crypto is as decentralized as claimed. It was announced this morning that...

Thursday, May 12, 2022, 01:08:25 PM

Fugitive Do Kwon Wants To Call The FBI On Guy Terraform Accidently Sent $1.5 Million Worth of LUNA To

“Just another day in crypto, innit?” said this guy on Reddit.  Do Kwon, the founder...

Tuesday, January 10, 2023, 06:31:00 AM

Take Kwon Do: DOJ Probes Terra Stablecoin Collapse

According to persons familiar with the situation, the Justice Department is examining the collapse of...

Tuesday, March 14, 2023, 02:59:00 PM

BREAKING: Do Kwon Said To Be Arrested In Montenegro

It is currently being reported on Twitter that Do Kwon, founder of the Singapore-based Terraform...

Thursday, March 23, 2023, 09:25:38 AM