Do Kwon, Do Five Other Affiliates, is being granted a warrant by a South Korean court, according to a report

Do Kwon, Do Five Other Affiliates, is being granted a warrant by a South Korean court, according to  ...

Following an ongoing investigation into the collapse of the Terra ecosystem, a court in Seoul issued a warrant for Do Kwon, the CEO and CEO of TerraForm Labs. According to a new report, the warrant was reportedly issued in connection with a violation of capital market regulations and targeting five other individuals currently living in Singapore. In May this year, Terraform Labs'' algorithmic stablecoin UST and its sister token LUNA imploded dramatically, resulting in a destruction of at least $40 billion (

According to a Bloomberg report, a court had issued arrest warrants for the Terra founder and five others. According to the warrants, Kwon and his accomplices violated Korean capital markets legislation. According to a text message, the prosecutor''s office has issued an arrest warrant.

The blockchain''s ecosystem became the fifth largest cryptocurrency by market cap in May when investors lost confidence in the currency peg of the network''s UST stablecoin. Since UST was not backed by real dollars and instead held its value through an algorithmic relationship with LUNA, the loss of confidence resulted in a fatal spiral that reduced the price of LUNA and UST to fractions of a penny.

Terra''s collapse sparked investigation from the US Securities and Exchange Commission (SEC) and Korean regulators, as well as several class-action lawsuits.

In July, South Korean officials raided at least seven cryptocurrency exchanges in connection with investigations into Terraform Labs. Several cases allege that Kwon and his company tasked investors and accused the company of operating a Ponzi scheme.

The blockchain used by Kwon Labs following the collapse of the original Terra blockchain has been hampered as a result of the discovery of arrest warrants. The native LUNA token has dropped more than 36 percent in the past 24 hours.

  • Crypto Chart Drenched in Red Ahead of Ethereum Merge Upgrade