Terraform Labs Founder Do Know stares at trouble following the arrest warrant by the South Korean government.
Remember, the declines in Terra stablecoin and LUNA had the cryptocurrency market losing around $40 billion.
More Woes for Do Kwon?
Bloomberg reports show the Seoul court issued an arrest warrant against Terra CEO Do Kwon. Meanwhile, the list included five more names. The report shows the Terraform founder faces the law for abuse of market rules.
Earlier reports from Coingape indicated that Do Kwon hired local firm lawyers to aid the case. He did that to be ready for the upcoming legal woes that emerged during the latest investigation by the authorities.
The reports show that Korean prosecutors investigated more than 15 cryptocurrency companies. Moreover, they conducted seizures and raids on Terra affiliates’ and execs’ offices.
The court warrant indicates that the six people are in Singapore. Meantime, Do Kwon is yet to react to the matter.
Remember, Do Kwon had claimed that South Korean investigators never charged him. Also, he told Coinage that he was staying in Singapore. Kwon added that deciding to move to South Korea is a challenge.
Terra Coin Under New Scrutiny
The Terra-driven global crypto market slumped had shocked the financial world. The marketplace surrendered over $40 billion within some days. However, Do Kwon reacted to the crisis by launching a new coin.
Coingape reports show South Korean regulators kick-started a new investigation on Terra coins. That led to the review of LUNC, LUNA, and USTC over categorization under securities.
Meanwhile, Terra Classic has plummeted by more than 15% within the past day.
The TerraUSD stablecoin was once one of the top ten digital assets by market cap. Meanwhile, May sessions saw it breaching its USD tie, crashing alongside its paired coin LUNA.
The elliptic analytic firm announced that the two tokens saw investors losing approximately $42 billion.
The market slump that followed saw leading crypto companies collapsing, including United States cryptocurrency lender Celsius and Singapore’s fund manager 3AC.
Meanwhile, Kwon confirmed migrating to Singapore for his family’s security and not attempting to escape investigators.