Cryptocurrencies Terra Luna and Terra USD, are the subject of an arrest warrant issued by a South Korean court. Investors were alarmed by their spectacular collapse earlier this year, which caused major token values to crash. According to the prosecution, Singapore-registered Terraform Labs broke capital market laws.
After the prices of Kwon’s network’s stablecoin, UST, and the associated native LUNA token crashed in May, sending the overall crypto market into a tailspin, South Korean prosecutors last week issued a warrant for Kwon’s arrest on suspicion of fraud. After issuing the arrest warrant, the nation took action to invalidate his passport.
A red notice asks law enforcement agencies all over the world to find the named person, apprehend them, and detain them until extradition proceedings can start. The notice is distributed to police departments in 195 different nations.
The failure of the South Korean cryptocurrencies Luna and Terra resulted in calls for the imprisonment of Do Kwon, the creator, and numerous investigations. Despite this and a wider “crypto winter” that has driven prices down across the board, South Korea’s appetite for everything web3 remains.
He is believed to be in Singapore, a country without a formal extradition treaty with South Korea. Mr. Kwon said that it was “kind of hard” to decide whether he wanted to return to the country.