South Korean courts issue arrest warrant against LUNA founder Do Kwon for the downfall of the Terra ecosystem.
According to local media reports, the Financial and Securities Crimes Unit of the Seoul Southern Prosecutors' Office has issued a Arrest warrant issued for LUNA founder and Terraform Labs CEO Kwon Do-Hyeong, better known in the industry as Do Kwon.
The founder of LUNA has been under the radar of South Korean justice since collapse of the Terra ecosystem in May 2022. Cinco fiscal of the Financial Investigation Division South Korean cryptocurrency exchanges have been analyzing the events that led to the collapse of the platform and its stablecoin, UST.
Investigators obtained several documents after searching the headquarters of 15 companies, including seven exchanges, including major Korean exchanges, like Upbit or Bithumb, where they found information about UST and LUNA transactions, which caused losses to almost 200.000 Korean investors after the devaluation of the price of the tokens and the subsequent fall of the ecosystem, which caused the division of the original blockchain into two: Terra Classic (LUNC) and Terra (MOON).
Investigators conducted searches at least eight other locations, including the homes and offices of some of those involved in the investigation.
Among the legal actions against Do Kwon are those of defrauding investors, as well as rumors about the Creation of a Ponzi scheme for money laundering and even tax evasion.
Following this investigation, the arrest warrant has been issued, as the authorities have found evidence that Do Kwon has violated South Korea's Markets Act, whose regulations classify Terra (LUNA) as a security that was offered illegally without being registered.
For now, LUNA founder Do Kwon remains at large at his home in Singapore. In this regard, South Korean authorities plan to use international legal tools, activating the Interpol red alert to invalidate Do Kwon's passport and proceed with his arrest.
The arrest warrant has a duration of one year and extends to Nicholas Platias, another founder of LUNA and Han Mo, an employee of Terraform Labs, all based in Singapore.
LUNA's founder, a controversial figure
Do Kwon has been, from the beginning, a complex figure who has drawn the attention of the crypto community and specialized media due to his harsh criticism and arrogant attitude, reaching rejoice at the fall or disappearance of other cryptocurrency projects.
During the collapse of Terra, Kwon showed his commitment to the community and said he was “heartbroken for having caused so much harm with his invention.”
He immediately set to work on a solution for LUNA, which was going through a hard fork that split the network in twoHowever, much of the community complained and presented another proposal for remove artificially created tokens during the collapse and “reboot” the network, which Kwon refused to do.
Since then, Do Kwon has remained in the background, appearing on two occasions: once to deny that the South Korean justice system was after him and another to blame themselves for the LUNA debacle.
The LUNA community against Do Kwon
FatMan, one of the most active members of the Terra community and one of the main Do Kwon Doo detractors, has promoted a Class action lawsuit against LUNA founder for their alleged active participation in the collapse of the ecosystem.
Separately, CoinGecko data shows that someone has launched an ERC-20 token called Jail Kwon, with the ticker JKWON, shortly after the news of the arrest warrant was made public, which demonstrates the rejection that the figure of the CEO of Terraform Labs arouses in the crypto community.
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