South Korean court seeks arrest of Terra’s founder Do Kwon

Do Kwon, founder of Terraform Labs, has received an arrest warrant from a South Korean court, increasing the investigation into the crypto ecosystem whose two currencies lost $40 billion in value in a matter of days.

Following the revelation, which was first reported by local media Yonhap, the price of LUNA, the new token of the resurrected ecosystem, fell by nearly 23% to $3.3 per unit.

According to the news source, the South Korean court has issued arrest warrants for six persons. It also stated that the prosecutors think the defendants had broken the country’s capital market laws.

The so-called stablecoin UST and cryptocurrency LUNA from Terraform Labs abruptly collapsed in May due to investors’ loss of confidence in the strength of its underlying principles.

Significant cryptocurrency exchanges, including Binance and Coinbase, delisted the token and stopped support for several of its trading pairings. (Since then, several exchanges have resumed offering the old token with minimal support.)

Even though authorities are preventing his staff from leaving the country, Kwon said in an interview last month that South Korean prosecutors hadn’t gotten in touch with him and hadn’t been charged with anything.