Earlier this month, a court in Seoul issued an arrest warrant against Do Kwon and five others, accusing them of violating the country’s Capital Markets Act.
Interpol issued a red notice against Terraform Labs’ CEO Do Kwon, who is wanted by the South Korean authorities, after he was indicted for the $40 billion cryptocurrency theft, according to a Bloomberg report.
Earlier this month, a Seoul court issued an arrest warrant against five people along with Do Kwon, charging them with violating the country’s Capital Markets Act.
In addition, South Korean prosecutors previously charged Do Kwon, who is on the run, with non-cooperation. However, on September 17, Do Kwon tweeted that the firm is in full cooperation and that it would defend itself in multiple jurisdictions. He said, “We have held ourselves to an extremely high standard of integrity, and we look forward to clearing up the facts over the next few months.”
We are preparing for and anticipate defending ourselves in multiple jurisdictions – we have set a very high standard of integrity, and look forward to clearing up the facts in the near future – Do Kwon 🌕 (@stablekwon) September 17, 2022
Terraform Labs created TerraUSD, an algorithmic stablecoin and Luna, its native token. Luna and stablecoin TerraUSD collapsed spectacularly in May, triggering a significant drop in the cryptocurrency market.
As a result, several nations scrutinized stablecoin rules after the calamity, including the crypto sector, which saw several bankruptcies, including crypto hedge fund Three Arrows Capital.
The collapse also impacted a number of crypto lenders including BlockFi, Celsius Network, Voyager and others.
The crash also wounded the cryptocurrency sector’s confidence, with Coinbase, Gemini, Robinhood, BlockFi, BitMex, and Crypto.com all reducing their staffs.