About a month ago, Terra founder Do Kwon hired lawyers from a domestic law firm to take legal action in response to an investigation by the Seoul Southern District Prosecutor’s Office.
Several class action lawsuits have already been filed in the US against Terra, Do Kwon and its affiliates. Additionally, Terra Insider “Fatman” was seen engaging in US class action lawsuits against Terra and its executives.
Following Kwon’s preparation, a South Korean court has issued an arrest warrant for the founder of the cryptocurrency ecosystem of Terraform Labs. $40 billion was wiped out of the crypto market as a result of the collapse of Terra’s stablecoin USTC and Terra Classic LUNC.
Bloomberg reported that a court in Seoul issued a warrant against Do Kwon. However, the names of five other people were also included in the warrant. Reports indicate that the Terra Chief has been booked for violating market rules.
The arrest warrant shows that all six persons are based in Singapore. However, Do Kwon has not commented on the matter.
According to reports, Korean prosecutors have searched more than 15 crypto companies. While the offices of TERRA officials and associates were also being raided and seized.
Notably, the Joint Financial and Securities Crimes Investigation Team of prosecutors collected transaction records and other evidence regarding the Terra-Luna accident and fraud allegations against Kwon and associates. In addition, several class actions and lawsuits awaited Do Kwon’s appearance in court, which is why Kevin decided to seek legal support.
Kwon previously denied the fraud and money laundering charges against him, saying:
“I am responsible for the weaknesses in which the short selling force would have benefited.”