Currently, Terra's co-founder Do Kwon is in jeopardy of arrest following a recent warrant issued by a court in South Korea.
In Brief
Authorities in South Korea have issued an arrest warrant not just for Do Kwon, but also for five others, including Nicholas Platias.
A possible red notice may be issued.
The arrest warrant has been issued by a South Korean court for Terraform co-founder Do Kwon and five others, including the creators behind the company known for the Terra and Luna tokens, which have struggled since their dramatic downfall in early May. prices crashed Early May saw a troubling situation arise, and since then, the values have not found stability.
This marks the first time that warrants have been issued in connection with the Terra case.
As Do Kwon is currently residing in Singapore, it could necessitate help from Interpol for his apprehension, as noted by a local news source. Chasun Since the arrest warrant is effective for only one year, South Korean officials could ask Interpol to issue a red notice to aid in the detention. During a recent interview, Kwon claimed he hadn’t been contacted by investigators about the ongoing inquiry into Terraform.
In addition to Kwon, there's a pursuit for Nicholas Platias, who is another pivotal figure at Terraform Labs, as well as employee Han Mo. The names of the other three individuals involved have not been disclosed.
According to another source The charges against them likely includes accusations of breaching the Capital Markets Act. Prosecutors suspect that the tokens Terra and Luna may meet the definition of 'investment contract securities' as specified by law. In essence, investors were led to believe that these tokens would yield profits, hence the warrants for their arrest.
The Luna collapse and the aftermath
The scrutiny on Terraform has increased, especially since the algorithm-driven stablecoin Luna lost its linkage to the dollar without recovery. had been aware The team behind Luna was previously warned about the risks related to the project. It has even been suggested that since as far back as 2019, some individuals linked to the project hinted that the founder was aware of the impending risk of Terra's failure.
Reflecting on past decisions, Kwon acknowledged, 'In hindsight, we should have approached things with more skepticism,' revealing that he failed to adequately assess risks because he was confident that the Terra blockchain 'was simply going to function as intended.' said The cryptocurrency ecosystem, which boasted a market cap of $60 billion, saw a massive decline in value over just a few days. Nevertheless, the creators crafted a recovery plan following the catastrophic collapse of Luna and TerraUSD.
This led to the introduction of Terra 2.0, where they revamped the original blockchain under the name Terra Classic and distributed new tokens. Initially, the prices dipped sharply, but it appeared that the new token Terra LUNA was showing promising signs of recovery, regaining some initial value. However, just as the prices began to surge, a dramatic drop was observed in the last 24 hours, with a staggering decline of 35.41%. For many, the initial perception of Terra LUNA was that it sounded almost too good to be true, and the events of May unfortunately validated that concern. The collapse of Luna sent shockwaves throughout the cryptocurrency community.
In an interview, Kwon reiterated that he hadn’t been approached by investigators concerning the Terraform situation.
Beyond Kwon, the inquiry by the Seoul Southern District Prosecutor’s Office is also targeting Nicholas Platias, another co-founder of Terraform Labs, and their employee Han Mo, keeping the identities of the other three individuals shrouded in mystery.
The arrest warrant has been issued by a South Korean court for Terraform co-founder Do Kwon and five others, including the creators behind the company known for the Terra and Luna tokens, which have struggled since their dramatic downfall in early May. prices crashed Early May saw a troubling situation arise, and since then, the values have not found stability.
As Do Kwon is currently residing in Singapore, it could necessitate help from Interpol for his apprehension, as noted by a local news source. Chasun Reports indicate that charges being brought forth relate to supposed breaches of the Capital Markets Act, with claims that both Terra and Luna could be seen as 'investment contract securities.' This means that investors put their money into these tokens with the expectation of earning returns.
Many found Terra LUNA to be excessively optimistic from the beginning.
Stay informed on the latest details regarding cryptocurrency distributions in our updates.
Do Kwon, the co-founder and CEO of Terraform Labs, continues to be in the spotlight.
This led to the introduction of Terra 2.0, where they revamped the original blockchain under the name Terra Classic and distributed new tokens. Initially, the prices dipped sharply, but it appeared that the new token Terra LUNA was showing promising signs of recovery, regaining some initial value. the meteoric crash of Luna and Terra For many, the initial perception of Terra LUNA was that it sounded almost too good to be true, and the events of May unfortunately validated that concern. The collapse of Luna sent shockwaves throughout the cryptocurrency community.
In an interview, Kwon reiterated that he hadn’t been approached by investigators concerning the Terraform situation.
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