- Terra platform’s downfall in May included the collapse of the TerraUSD stablecoin.
- A court in Seoul issued a warrant for Do Kwon and five others on suspicion.
A fresh investigation is going on Terra (LUNA). Today A court in South Korea has issued an arrest warrant for Do Kwon. The creator of the Terraform Labs cryptocurrency ecosystem, the downfall of which prompted a global crypto panic earlier this year.
Reason for the Arrest
The Terra platform’s downfall in May included the collapse of the TerraUSD stablecoin. Which shook faith in the digital-asset sector, which has yet to recover much of its losses.
Terra’s demise prompted inquiries in South Korea and the United States, as well as increasing regulatory scrutiny of stablecoins. Which are digital tokens tied to an asset such as the dollar. Stablecoins are a popular option for investors looking to spread their holdings away from more volatile coins, and they make it easier to transfer assets to crypto exchanges.
Prosecutors raided the house of Terraform Labs co-founder Daniel Shin in July, as the investigation into claims of unlawful activities behind the TerraUSD crash deepened.
Prosecutors were reportedly listening to different points of view by questioning virtual asset experts as well as financial authorities such as the Financial Supervisory Service as reference persons.
According to a text message from the prosecutor’s office, a court in Seoul issued a warrant for Do Kwon and five others on allegations of violations of the nation’s capital markets law. And also stated that all six people are in Singapore. Do Kwon did not respond quickly to an email requesting a comment.
“Do Kwon has stated that he will cooperate when the time comes. “Life is long,” Kwon stated in an interview with crypto media startup Coinage, about the possibility of jail time.”
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