A court in South Korea issued an arrest warrant for the Terraform Labs founder Do Kwon. The warrant follows the collapse of the $40 billion Terra ecosystem and its algorithmic stablecoin (UST), which was the first domino to fall in this year’s crypto winter. The warrant included five additional individuals, Bloomberg News reported. They are charged with violating the Capital Markets Act, the report said.
Do Kwon said in an interview last month that South Korean prosecutors hadn’t been in contact with him, and he hasn’t been charged with anything. However, he and other Terraform employees were not allowed to leave the country.
The Terra-Luna collapse triggered an industry-wide fallout, with the bankruptcy of crypto hedge fund Three Arrows Capital (3AC), crypto lender Celsius Network and crypto broker Voyager Digital.