A court in South Korea is issuing an arrest warrant for Terraform Labs founder Do Kwon following the collapse of the cryptocurrency Terra (LUNA) and algorithmic stablecoin TerraUSD (UST).
Citing information from the prosecutor’s office, Bloomberg reports that warrants were issued to Kwon and five others who were charged with violations of the country’s capital markets law.
All six accused are located in Singapore.
South Korean authorities considered filing criminal charges against Kwon in the wake of the historic crash that led to losses of around $40 billion.
In anticipation of facing a slew of cases, the embattled executive hired a lawyer last month and submitted a letter of appointment to an attorney at the Seoul Southern District Prosecutor’s Office, the office tasked to investigate him.
Prior to Terra and Kwon’s downfall, LUNA was one of the biggest crypto assets by market capitalization.
From trading the all-time high of nearly $120 in April, Terra plunged to near zero in May. The dollar peg of the stablecoin TerraUSD also tumbled.
Terra’s crash happened amid a crypto winter that saw Bitcoin (BTC) plunge from a record high of $67,549 in November to below $20,000. At time of writing, the king coin is trading for $20,145.
There are no reports of Kwon being served with the warrant at time of writing.
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