A court in South Korea has issued an arrest warrant for Do Kwon, the founder of Terraform Labs, escalating its probe into the crypto ecosystem whose two tokens lost $40 billion in value in a span of days earlier this year.
LUNA, the new token of the revived ecosystem, dropped 18% on the news, which was first reported by Bloomberg.
Terraform Labs’ so-called stablecoin UST and cryptocurrency LUNA, dramatically imploded in May after investors lost faith in the efficacy of its fundamentals. Major crypto exchanges including Binance and Coinbase delisted the token and discontinued several of its trading pairs. (Many exchanges have since revived limited support for the old token.)
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 — even though law enforcement is barring his employees from leaving the country.
This is a developing story. More to follow…
South Korea issues arrest warrant for Luna founder Do Kwon by Manish Singh originally published on TechCrunch