Do Kwon, co-founder of Terraform Labs has been issued an arrest warrant by a South Korean court in the wake of Terra Luna’s collapse earlier this year.
- A report from South Korean news outlet Chosun Ilbo details that there were an additional 5 arrest warrants laid out. This includes Nicholas Platias, a founding member of Terraform Labs, and Han Mo, an employee. The charges being faced are for violating the Capital Markets Act. As prosecutors believe that Terra Luna falls under an “investment contract security”.
- Although the warrant was issued by a South Korean court, key members of Terraform Labs including Kwon and the 5 other individuals are currently located in Singapore. As a result, the warrant is valid for the next year. This comes after South Korean authorities banned Terra Luna’s main designers from leaving the country.
- After LUNA and sister stablecoin UST collapsed earlier this year, investors were bought to outrage with a combined US$42B wiped out from the two coins alongside a 99.99% drop in price. In turn, investors were quick to sue Kwon and others for violating various laws and acts as rumors were quick to spread in relation to the downfall.
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