While the LUNC community rejoices over the potential return of the Terra Luna Classic (LUNC) token, TerraForm Labs founder Do Kwon is now facing an arrest warrant from the South Korean authorities.
A court in Seoul reportedly issued an arrest warrant for Kwon and five others, all of whom are currently based in Singapore. According to the prosecutor’s office in South Korea, Terra’s founder is facing charges of violating the country’s capital markets law.
In May, the Terra community was previously suspected of a FUD attack, leading to one of the most devastating market crashes in crypto history, causing the loss of millions of assets from investors of Terra USD (UST) – now renamed Terra Classic USD (USTC). ) has been done. – and Terra (LUNA), also rebranded to Terra Luna Classic (LUNC). The UST stablecoin began to move away from its dollar peg, falling to an all-time low of $0.006 in June.
Besides UST, LUNA, an asset that once peaked at $119.18 in April, has hit a massive all-time low of $0.0000009, pinning the suicide hotline on the project’s Reddit community.
The Terra crash also affected various decentralized finance (DeFi) protocols, causing a drop of 80% or more for stablecoin-linked projects.
related: Exchanges criticized for ‘Nothingburger PR’ posts on upcoming LUNC tax burn
On August 17, Kwon hired lawyers for a law firm based in South Korea, just days after saying that authorities had not contacted him yet. According to a report, the founder of Terra gave the appointment letter to the department responsible for investigating the Terra collapse.
Terra’s founder also broke his silence on August 16 in an effort to remove his name from the various allegations. However, despite Kwon’s efforts, members of the community still criticized the Terra CEO, comparing his position to the creator of Tornado Cache, who was arrested for writing privacy code.
