Last Updated on September 14, 2022 by Bitfinsider
Do Kwon, the founder of Terraform Labs, has received an arrest request from a South Korean court, increasing the investigation into the crypto ecosystem whose two currencies lost $40 billion in value in a matter of days earlier this year.
Following the revelation, which was first reported by local media Yonhap, the price of LUNA, the new token of the resurrected ecosystem, plunged as much as 48.4% to $2.23 per unit before marginally recovering. According to the news source, the South Korean court has issued arrest warrants for six persons. It also stated that the prosecutors think the defendants had broken the country’s capital market laws.
The so-called stablecoin UST and cryptocurrency LUNA from Terraform Labs abruptly collapsed in May as a result of investors’ loss of confidence in the strength of its underlying principles. Significant cryptocurrency exchanges including Binance and Coinbase delisted the token and stopped support for a number of its trading pairings. Since then, many exchanges have resumed offering the old token with minimal support.
Despite authorities preventing his staff from leaving the country, Kwon claimed in an interview with Coinage last month that South Korean prosecutors hadn’t gotten in touch with him and that he hadn’t been charged with anything.
Kwon said: “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, South Korean authorities searched the residence of Terraform Labs co-founder Daniel Shin as part of an investigation into claims that unlawful activities contributed to Terra’s demise. Authorities had additionally stated that Kwon must inform them of his return to the nation.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.