Arrest warrant issued for Kwon and five others in Singapore.
The Seoul Central District Court has issued an arrest warrant for Kwon and five other individuals who are currently residing in Singapore.
As the LUNC community celebrates the potential return of the Terra Luna Classic (LUNC) token, the founder of Terraform Labs, Do Kwon, is now facing an arrest warrant from South Korean authorities. This turn of events is a major blow to the project, and casts a dark shadow over its future.
Kwon is facing allegations of violating South Korea's capital markets law and is currently located in Singapore. If convicted, he could face up to 10 years in prison.
The market crash that began in May was one of the most devastating in crypto history, leading to the loss of millions of assets from investors in Terra USD (UST) and Terra (LUNA). The UST stablecoin began to drift away from its dollar peg, dropping to an all-time low of $0.006 in June. The Terra community is working to rebound from this crash, but it will be a long and difficult process.
The recent collapse of the LUNA token price has caused widespread panic and despair among investors. The token, which once reached a high of $119.18, has now plummeted to an all-time low of $0.0000009. This has led to calls for suicide hotlines to be set up for those who have lost everything in the crash. The Reddit community is currently in turmoil, with many people desperately trying to find a way to recoup their losses.
Decentralized finance (DeFi) protocols took a major hit when the Terra stablecoin crashed, with many projects seeing declines of 80% or more. The crash highlights the risks associated with DeFi protocols, which are often complex and difficult to understand. However, the crash also highlights the potential of DeFi protocols to provide users with access to financial services that traditional financial institutions cannot or will not provide.
I believe that Kwon hiring attorneys from a law firm based in South Korea is a positive development. The fact that he is taking this step just a few days after saying that the authorities have not yet reached out to him shows that he is serious about getting to the bottom of the Terra collapse. I hope that the investigation will be thorough and that those responsible for the collapse will be held accountable.
Kwon's efforts to clear his name have been met with criticism from some members of the community, who compare his situation to that of the creator of Tornado Cash, who was arrested for writing a privacy code.