Seoul Court Issues Arrest Warrant for Do Kwon and 5 Others

blockchain.news:

Do Kwon, the founder of the bankrupt Terraform Labs crypto ecosystem, has been issued an arrest warrant from a court in South Korea.

Do Kwon and five others have allegedly violated the nation's capital markets law and have been issued a warrant from the court in Seoul, the prosecutor’s office informed Bloomberg.

Kwon and the other five are all located in Singapore, Bloomberg reported citing the prosecutor's office. However, Kwon is yet to reply to an email sent by Bloomberg seeking comment.

Kwon's tokens, including Terra (LUNA) and Terra Classic (LUNC), collapsed massively after the arrest warrant was issued. LUNA was trading as low as  $2.4964 at 3:55 PM HKT, down over 35.7%. Its market cap was down to over $347 million from over $555.12 million, while LUNC was trading at $0.0002716, down by over 22.3% during the Asia trading section, according to <dfn data-info=«CoinMarketCap is the world» s most-referenced price-tracking website for="" cryptoassets in the rapidly growing cryptocurrency space. its>CoinMarketCap.

Terra Classic is home to the algorithmic stablecoin TerraClassicUSD (UST). It's now-renamed LUNC token collateralized UST, which crashed in a bank run in May.

The fall of the Terra Platform in May led to the historic collapse of the TerraUSD (UST) stablecoins, which has affected the faith of many people in the digital-asset sector. Currently, the crypto sector still remains rattled by the downfall of the stablecoin, and recovery is still under process.

Do Kwon also helped create Luna as part of the Terraform Labs crypto ecosystem, which also lost its value during the fall of the ecosystem.

The ecosystem collapsed when TerraUSD — also known as UST — crumbled from its dollar peg and brought down the ecosystem he