South Korea Prepares to Arrest Do Kwon- Decoding Details

Due to the South Korean government’s request for his arrest, Do Kwonits founder Terraform Labs, is in grave danger. The cryptocurrency market lost 40 billion dollars as a result of Terra’s stablecoin USTC and Terra Classic LUNC it collapses.

The prosecutor’s office said Do Kwon and five other people were the subject of a Seoul court warrant in a text message. The Bloomberg report claimed that Kwon is believed to currently reside in Singapore.

Additionally, arrest warrants have been filed for the co-founder of Terraform Labs Nikolaos Platias and colleague Han Mo. They are accused of violating it Capital Markets Law.

Big trouble for Do Kwon

The warrant was issued a few months after the collapse of the Terra ecosystem and its stablecoin (UST), which had a major impact on cryptocurrency markets.

In addition, due to the collapse, various nations are considering stablecoin laws and the prominent cryptocurrency hedge company Three Arrows Chapter (3AC) declared bankruptcy.

Major cryptocurrency exchanges including Binance and Coinbase deleted the token and discontinued support for some of its trading pairs.

Kwon had insisted he was cooperating with authorities in his first public interview last month. In addition, Kwon confirmed his commitment to the Terra ecosystem and the newly introduced Terra cryptocurrency (LUNA).

It was previously reported that Terra’s founder subsequently hired lawyers from a nearby firm. This was done to prepare for the potential legal issues that arose during the government investigation that had just begun.

According to sources, Korean prosecutors have searched 15 cryptocurrency companies. While the offices of Terra executives and subsidiaries were raided and seized.

Kwon revealed an ambitious plan to rebuild the Terra ecosystem with a new iteration of its native currency in the months following the fall of UST and Luna.

The report added that the arrests are planned to be made in cooperation with Interpol and that the warrant is good for one year.

Terra LUNA prices

LUNA’s behavior in September is particularly interesting since it has recovered more than 300% month to date after a prolonged period of stabilization in the broad range. It is important to remember that LUNA also trades on multiple platforms under the ticker LUNA2.

On September 9, LUNA/LUNA2 began pumping, a day in which many things happened in the Terra ecosystem. First, governance recommendations were adopted by Luna Classic (LUNC) to enforce a 1.2% tax for all her on-chain transactions for the day.

In other words, any on-chain transaction will block permanently 1.2% of LUNC provision as a result of the recommendations.

Second, FatMan, a self-proclaimed Terra whistleblower, allegedly identified TerraForm Labs as the sender of a suspicious transaction involving 435,000 LUNA2 tokens.

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