Do Kwon, the founder of Terraform Labs has landed into big trouble as the South Korean government has issued an arrest against him. The collapse of Terra’s stablecoin USTC and Terra Classic LUNC resulted in a $40 billion wipeout from the crypto market.
More Trouble for Do Kwon?
Bloomberg reported that a court in Seoul issued a warrant against Do Kwon. However, the warrant also includes the names of five other people. The report suggests that the Terra Chief has been booked for violations of the market rules.
Earlier, Coingape reported that Terra’s founder went on to hire lawyers from a local firm. This was done in order to prepare for the upcoming legal troubles that rose during the recently launched investigation by the government.
As per reports, Korean prosecutors conducted searches over 15 crypto companies. While raids and seizures were also being done on the Terra executives’ and affiliates’ offices.
However, the arrest warrant shows that all six individuals are located in Singapore. Meanwhile, Do Kwon hasn’t replied to the matter.
Meanwhile, in an interview Do Kwon claimed that Korean regulators haven’t pressed any charges against him. However, he revealed whether he is living in Singapore or not. He added that it is kind of hard to make this decision.
Terra tokens under new investigation
The collapse of the global crypto industry led by Terra Luna has shocked the market. More than $40 billion just disappeared from the market within a few days. Meanwhile, Do Kwon soon after the historic slump launched a new token Terra LUNA.
As per a report by Coingape, South Korean prosecutors launched a new investigation over the Terra tokens. A review has been initiated of LUNA, LUNC, and UST (now USTC) over its categorization under securities.
On the market side, Terra Classic prices have dropped by around 15% over the past 24 hours.