Terra Native Coins Plummet as South Korea Issues Arrest Warrant for Terraform Labs CEO, Do Kwon
The financial crimes unit of the District Prosecutors Office in Seoul has issued an arrest warrant against Do Kwon and five other employees of Terraform Labs
According to a local news outlet Chosun Ilbo, a South Korean court has issued an arrest warrant for Do Kwon, CEO of Terraform Labs, intensifying its investigation into the Stablecoin-led implosion of the Terra ecosystem.
The warrants were issued for five additional persons, including Nicholas Platias, head of research of the now defunct Terraform Labs and Han mo, on allegations of violating the Capital Markets Act.
In May 2022, the collapse of the $40 billion Terra ecosystem and its algorithmic stablecoin (UST), provoked a widespread insolvency domino effect, with companies like Celsius Network, Voyager Digital and Singapore-based hedge fund Three Arrows Capital filing for bankruptcy, as the value of the crypto assets plummeted to new lows, crashing nearly 100% in value.
Currently, the affected members of Terraform Labs, including CEO Do Kwon, have taken up residence in Singapore. As a result, the prosecutors are expected to coordinate with Interpol to arrest Do Kwon and others within a year.
Meanwhile, the price of Terra’s native tokens, LUNC, USTC, and LUNA, plummeted by at least 35% since the report of the arrest warrant.