South Korean prosecutors investigating the collapse of Terra-LUNA have issued an arrest warrant for Terraform Labs cofounder and chief executive officer Kwon Do-hyung, also known as Do Kwon, the Seoul Southern District Prosecutors’ Office told Forkast.
See related article: Securities or not? South Korea to evaluate Terra’s LUNA token
- “Violation of the capital markets law is among [the charges] included [for the arrest warrants],” said Choi Sung-kook, prosecutor at the Seoul Southern District Prosecutors’ Office. He declined to name the other charges.
- The prosecutors will request an Interpol red notice — which asks law enforcement worldwide to locate and arrest an individual — in order to get hold of Kwon, who is currently residing in Singapore, Choi told Forkast.
- Prosecutors also issued arrest warrants for five other Terraform Labs affiliates, including Terra’s former head of research Nicholas Platias and the CEO of Chai Corporation, whose last name is Han.
- According to lawsuits filed against Kwon and Terra affiliates, prosecutors had been reviewing the Terra-LUNA collapse on fraud charges, an accusation which Kwon denied in a media interview.
- The collapse of Terra’s stablecoin and sister cryptocurrency back in May led to an estimated loss of US$40 billion globally, affecting around 280,000 investors in South Korea alone.
See related article: Terra CEO Do Kwon denies allegations of fraud