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HomeLaw & PoliticsSouth Korean court issues arrest warrant to Terraform Labs founder Do Kwon

South Korean court issues arrest warrant to Terraform Labs founder Do Kwon

Do Kwon the founder of Terraform Labs and five other individuals who are now in Singapore are the subjects of an arrest order that was issued by a court in Seoul, which is situated in South Korea.

The founder of Terraform Labs, Do Kwon, has been issued a warrant for his arrest by the authorities in South Korea. The LUNC community is rejoicing over the prospect of a comeback for the Terra Luna Classic (LUNC) token, but at the same time, South Korean authorities have issued a warrant for Kwon’s arrest.

According to reports, a court in Seoul has issued an arrest order for Kwon and five other individuals, all of whom may be found in Singapore at the present time. According to the office of the prosecutor in South Korea, the creator of Terra is being investigated for possible violations of the country’s legislation governing the capital markets.

What the Terra community at first believed to be a fear, uncertainty, and doubt as FUD attack turned out to be one of the most catastrophic market crashes in the history of cryptocurrency, causing investors of TerraUSD (UST), which has since been rebranded as TerraUSD Classic (USTC), and Terra (LUNA), which has also been rebranded to Luna Classic, to lose millions of dollars’ worth of assets (LUNC). The price of one UST stablecoin fell to an all-time low of $0.006 in June, breaking the previous record set in January when it had been pegged to the US dollar.

Effect of this news over the price of LUNA

Effect of this news over the price of LUNA
Effect of this news over the price of LUNA

In addition to UST, the value of LUNA, an asset that had previously peaked in April at $119.18, plunged precipitously to an all-time low of $0.0000009, which prompted members of the project’s Reddit community to post the phone numbers of suicide hotlines.
The fall of the Terra stablecoin had an effect on a number of other decentralised finance (DeFi) protocols, which resulted in a loss of 80% or more for initiatives that had been affiliated with the stablecoin.

Kwon engaged lawyers from a legal company with headquarters in South Korea on August 17, only a few days after stating that the authorities had not yet contacted him. A report states that the creator of Terra personally presented a letter of appointment to the agency that is responsible for examining the collapse of Terra.

The creator of Terra broke his silence on August 16 in an effort to defend himself against a number of claims that have been made against him. Nevertheless, despite Kwon’s efforts, members of the community have continued to attack the CEO of Terra, equating his predicament to that of the founder of Tornado Cash, who was incarcerated for designing a privacy code.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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