A South Korean court has ordered the arrest of Do Kwon, CEO of Terraform Labs, the company behind the LUNA and UST cryptocurrency projects.
According to Bloomberg, the Seoul City Court (Korea) has issued an arrest warrant for Mr. Do Kwon, CEO of Terraform Labs, and five others for alleged "violations of investment capital market regulations."
The Financial Crimes Investigation Team of the Seoul Southern District Prosecutor's Office issued the arrest warrant. The Public Prosecutor's Office announced that the arrest warrant would be valid for one year and handed over to the International Criminal Police Organization (Interpol).
Do Kwon is at the center of the most severe crypto crash in history, wiping out the $60 billion market capitalization of LUNA and stablecoin UST in May.
According to many sources, Do Kwon is settling in Singapore since the incident happened. Even in mid-August, in an interview with Coinage Media, he also clarified, affirming his belief and purity.
At the same time, he showed a resolute attitude and was willing to hire a lawyer in Korea to confront the authorities in the legal situation.
South Korean authorities have gathered evidence, interviewed former project staff, and investigated Terraform Labs since the collapse, mainly targeting allegations of tax evasion.
The Korean side has extradition treaties with 31 countries, but Singapore is not on this list. Therefore, the arrest warrant was handed over to the International Criminal Police Organization (Interpol) for one year.
The prices of LUNA (new coin) and LUNC (old coin) are both falling sharply at the time of the update.
Besides, the LUNA coin has had a spectacular comeback in the past week, with an "initial" increase of more than 300%. However, at the moment, it has corrected to the mark of 2.94 USD, down more than 31.90% in the last 24 hours.
So far, the new Terra is still struggling to attract investors into the ecosystem. Total Value Locked (TVL) – the key DeFi metric that measures the value a protocol accumulates from investors – is hitting $51 million.
At the same time, Terra Classic's TVL peaked at over 20 billion dollars before being sunk.
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