- Besides Kwon, five other people are also on the verge of being arrested.
- All the six accused are charged for violating South Korea capital markets act.
- 2,000 plus investors filed a class-action lawsuit against Kwon in May.
When the LUNC community is celebrating owing to a strong comeback for the Terra Luna Classic token, things are going against Do Kwon, Terraform Labs founder, as the South Korean authorities have a warrant to arrest him.
A Seoul based court has issued an arrest warrant for him along with five others who are in Singapore as of now. Kwon has been accused of violating the capital markets law of the country.
S. KOREA COURT ISSUES ARREST WARRANT FOR TERRA FOUNDER DO KWON— IGSquawk (@IGSquawk) September 14, 2022
The Terra community suspected a FUD attack in May; however, it turned out to be among the most terrible market crashes, which led to a loss of millions of assets from those who had invested in TerraUSD (now TerraUSD Classic) and Terra (LUNA), which is now known as Luna Classic (LUNC).
In June, drifting from the United States dollar peg, the UST stablecoin fell to an all-time low of $0.006.
Besides UST, LUNA also dropped badly to an all-time low of $0.0000009. Things didn’t stop here as several DeFi protocols were also harmed, which caused a decrease by 80% or more for stablecoin projects.
On August 17, Kwon hired attorneys from a South Korea based law company after a few days of stating that no authorities have reached him. He delivered an appointment letter to the department that was meant to investigate the collapse of Terra.
On August 16, he broke his silence to say that he has nothing to do with the allegations. However, he was still criticized by the community members who compared him to the creator of Tornado Cash, who was accused of writing a privacy code and was arrested for the same.