Do Kwon Will Be Arrested, Court Has Issued Arrest Warrant

The founder of Terra LUNA, Do Kwon. (BeInCrypto)

JAKARTA – The founder of Terra LUNA, Do Kwon will be behind bars after a South Korean court issued an arrest warrant against the boss of Terraform Labs. The court has also stepped up investigations into the Terra (LUNA) and Terra USD (UST) crypto ecosystems whose prices fell more than 99 percent in May.

In addition to Kwon, a South Korean court also issued arrest warrants for six people, according to local media Yonhap. Prosecutors believe the individuals have violated the country's capital market rules.

Terraform Labs' algorithmic stablecoin UST and cryptocurrency LUNA dramatically collapsed in May and investors had to lose funds and trust in the efficacy of Terra's fundamentals. Major crypto exchanges including Binance and Coinbase are deleting tokens and discontinuing some of their trading pairs.

The deletion of LUNA and UST tokens on several major crypto exchanges is only temporary. Not long after that, they were back trading the new LUNA and LUNC, the old LUNA token that plummeted.

Kwon said in an interview with Coinage last month that South Korean prosecutors had not been in contact with him and he had not been charged with any charges despite law enforcement barring Terraform Labs employees from leaving the country.

“It was a bit difficult to make that decision because we never had any contact with the investigators. They never accused us of anything", Kwon said, quoted from CryptoPotato.

In July, authorities raided the home of Daniel Shin, co-founder of Terraform Labs. The action is part of an investigation into the alleged illegal activities behind Terra's collapse. In addition, the authorities also warned Kwon to report it when he returned to South Korea.