News

South Korean Court Arrest Terra Co-Founder Do Kwon

A South Korean court has ordered the arrest of Do Kwon, CEO of Terraform Labs, the company behind the cryptocurrency LUNA and UST project. According to reports, arrest warrants have been issued for Kwon and five others.

According to Bloomberg, the Seoul City Court has issued an arrest warrant for Mr. Do Kwon, CEO of Terraform Labs, and five other people for allegedly violating investment capital market regulations.

Because Do Kwon was at the center of the biggest crypto crash in history, wiping out the $60 billion market capitalization of LUNA and stablecoin UST in May. The warrant was issued just a few months after the Terra ecosystem and its stablecoin crashed, causing a significant ripple effect in the crypto markets.

The fall has prompted several nations to consider stablecoin rules, as well as multiple bankruptcies, including that of the high-profile crypto hedge fund Three Arrows Capital (3AC). Kwon stated in his first public interview last month that he is cooperating with authorities.

By the time the news was announced, both LUNC and LUNA were down sharply.

LUNC 1-hour chart. Source: CoinCu

LUNA 1-hour chart. Source: CoinCu

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.