A South Korean court has ordered the arrest of Do Kwon, CEO of Terraform Labs, the company behind the cryptocurrency LUNA and UST project. According to reports, arrest warrants have been issued for Kwon and five others.
According to Bloomberg, the Seoul City Court has issued an arrest warrant for Mr. Do Kwon, CEO of Terraform Labs, and five other people for allegedly violating investment capital market regulations.
Because Do Kwon was at the center of the biggest crypto crash in history, wiping out the $60 billion market capitalization of LUNA and stablecoin UST in May. The warrant was issued just a few months after the Terra ecosystem and its stablecoin crashed, causing a significant ripple effect in the crypto markets.
The fall has prompted several nations to consider stablecoin rules, as well as multiple bankruptcies, including that of the high-profile crypto hedge fund Three Arrows Capital (3AC). Kwon stated in his first public interview last month that he is cooperating with authorities.
By the time the news was announced, both LUNC and LUNA were down sharply.
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