Arrest Warrant Issued For Terra Co-Founder Do Kwon, Luna Price Drops
South Korean courts has issued an arrest warrant for the co-founder of Terra, Do Kwon. Do Kwon is know as the co-founder and CEO of the now defunct, Terraform Labs. They are known for their stablecoins LUNA and LUNC.
The warrant issued also includes 5 additional people related to the project.
Charged With Violation Of Capital Market Regulations
In May of 2022, in a matter of days, the Terra ecosystem crashed and lost $40 billion from the market. Terraform Lab’s UST collapsed after investors lost faith in the efficacy of its fundamentals. Many crypto exchanges like Binance, FTX and Coinbase also delisted the token.
Terraform Labs’ so-called stablecoin UST and cryptocurrency LUNA, dramatically imploded in May after investors lost faith in the efficacy of its fundamentals.
All six individuals that have the arrest warrants issued, are believed to be residing in Singapore, where Terraform was founded in 2018. The prosecution may seek help from Interpol to arrest Do Kwon.
Price of LUNA Crashes
TerraUSD, a supposed stablecoin that was once among the main 10 digital currencies on the market, broke its 1:1 stake to the U.S. dollar in May, plunging in worth and sending matched symbolic Luna plummeting with it.
Related: Crypto Prices Are Sinking After Recent Inflation Report, Here’s Why!
As the news of Do Kwon arrest broke, the price of LUNA dropped close to 40% as per data from CoinMarketCap.
Interestingly, $LUNA's price dropped more (-30%) than $LUNC (-21%) while $LUNC is the original project founded by @stablekwon 👀 pic.twitter.com/L86Xu21uD1
— Tom Wan (@tomwanhh) September 14, 2022
Over the weekend, LUNA actually gained a lot of traction, rising from around $1.96 to as high as $7.05 before the news today brought it down to around $2.563.
Related: A Non-Profit, Linux Foundation to Launch the OpenWallet Foundation
According to Reuters, in an August video interview with crypto media platform Coinage, Kwon said he had moved to Singapore because of concerns about his family’s safety and rejected suggestions that the relocation was due to the crash or an attempt to evade investigators.
For more info regarding Crypto Alpha and NFTs Alpha. Always follow us on Twitter and Instagram