An arrest warrant has been issued in Korea for Do Kwon, co-founder and developer of the LUNA and UST cryptocurrencies. The main charge brought against him is that of violating the Capital Markets Act.
Do Kwon is the young entrepreneur who presided over the spectacular collapse of the entire Terra ecosystem, which started with a run on the UST algorithmic stablecoin and the LUNA native ecosystem token.
The fallout from the collapse was like a domino effect, and crypto lenders and hedge funds such as Celsius, Voyager Digital, and Three Arrows Capital went into bankruptcy.
A court in Seoul, South Korea has issued an arrest warrant for the founder, alleging that the two cryptocurrencies in question were investment contract securities, and as such violated the Capital Markets Act.
Investment contract securities are securities that have money invested into them in the hope of making a profit.
The arrest warrant is not only for Do Kwon, but also includes Nicholas Platias, a founding member of Terraform Labs, and Han Mo who is an employee. All of whom are currently residing in Singapore.
According to the Twitter account Garlam, the warrant is active for one year, and tactics such as Interpol cooperation and the invalidation of passports will be used in order to bring Do Kwon and others to justice.
On the subject of giving himself up to authorities in order to give an account of his actions, Do Kwon was quoted by Bloomberg as saying that he will “cooperate when the time comes”.
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