South Korea issues arrest warrant for Do Kwon – the man behind the Luna disaster

Tram Ho

Bloomberg recently reported that a court in Korea has issued an arrest warrant for Do Kwon – co-founder and CEO of Terraform Labs. This is the company that owns the digital currency Terra Luna and TerraUSD, which collapsed in May.

In addition to Do Kwon, there are 5 other subjects on the list of arrestees according to court orders. According to a district prosecutor’s office in Seoul, the men are accused of violating South Korea’s capital market rules.

According to this office, all 6 subjects are in Singapore. To date, Do Kwon’s side has not responded to a request for comment on the above information. The collapse of the Terra ecosystem and the UST co-stable has shaken the world cryptocurrency community and shaken investors’ confidence in this field.

Because Kwon was accused by investors of fraud, causing millions of dollars in losses to domestic and foreign investors after the actual value of the digital currency Luna fell to zero in May, following the TerraUSD’s collapse.

Despite the rescue efforts of the co-founders, both cryptocurrencies are still virtually worthless. Experts call this the stain of the cryptocurrency market. As for Do Kwon, he was criticized for acting irresponsibly when the incident occurred. According to Reuters, to date, nearly 80 people have filed lawsuits against Do Kwon and co-founder Daniel Shin.

Hàn Quốc phát lệnh bắt giữ Do Kwon - người đứng sau thảm họa Luna - Ảnh 1.

Portrait of Do Kwon (Photo: Internet).

Another source said that the investigation agency has frozen the tax records of senior leaders at Terraform Labs and focused on clarifying the cash flow between companies affiliated with Terraform and the development of Luna coin. TerraUSD.

The “Luna disaster” has prompted authorities in many countries, including South Korea and the United States, to open related investigations and consider changing regulations in the supervision of co-stable.

This past July, prosecutors raided the home of Daniel Shin, another co-founder of Terraform Labs amid an investigation into the alleged illegal activity behind the collapse of TerraUSD. vigorously.

Last month, in the first public interview since the “luna disaster”, Do Kwon affirmed that the Terra project is not a scam under a multi-level model. Sharing with Coinage, Do Kwon said that he also suffered a lot of damage.

In addition, Do Kwon does not deny that the company has an insider. He thinks that this person can take advantage of the vulnerability to make money. “ If there’s a flaw in the design that allows crooks to take advantage of it, it’s my fault. I am the only one responsible ,” said Do Kwon.

When everything fell apart, my family faced several threats. So I had to leave Korea. I still have no intention of returning and there has been no summoning call from the Korean authorities ,” Do Kwon added. Do Kwon’s above statements have met with fierce opposition from the community. Most believe that CEO Terra continues to lie.

Source: Bloomberg, Reuters

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Source : Genk