Do Kwon, creator of the failed algorithmic stablecoin TerraUSD and LUNA, is the target of an arrest warrant in South Korea, according to a report.
South Korean publication Chosun writes, that Kwon is being pursued by the Seoul Southern District Prosecutor’s Office’s Financial and Securities Crime Unit. To quote the article:
“The main charges applied against them are violations of the Capital Markets Act. Prosecutors are known to believe that cryptocurrencies Terra and Luna fall under “investment contract securities” under the Capital Market Act. Investment contract securities are securities in which money is invested in a joint project in the hope of making a profit and a payment is received according to the result. It was reported that he had done it.” [translated]
The report continues to explain that Kwon remains in Singapore and the Prosecutor may leverage Interpol to execute the warrant.
Last July, Chosun reported that the Korean authorities had initiated a “search and seizure” of domestic crypto exchanges as part of an investigation of Terra and LUNA.
TerraUSD’s rapid implosion caused a series of after-shocks that reverberated throughout the crypto-sphere causing several firms to halt operations or file for bankruptcy. In May of this year, TerraUSD lost its dollar peg plunging to pennies on the dollar representing a profound loss of value.
The stablecoin that ended up not being very stable has become a poster child for the need for greater regulation in the global stablecoin sector. It was previously reported that the US Securities and Exchange Commission was also investigating Kwon and his firm.