BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home Business

South Korea Issues Arrest Warrant For Terra’s Founder Don Kwon

BlockNews Team by BlockNews Team
September 15, 2022
in Business, Crypto, Social
Reading Time: 3 mins read
A A
Don Kwon
1
SHARES
15
VIEWS
Share on TwitterShare on Reddit

The Luna Classic (LUNC) community was excited after the crypto rallied 40% on Tuesday to trade close to $0.0004. This excitement was short-lived following the issuance of an arrest warrant against the CEO of Terraform Labs Do Kwon by South Korean authorities. 

You might also like

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

Solana’s Top DEX Orca Restricts Access For American Users

DefiLlama Forks into a New Platform as Internal Disputes Unfolds

Terra and Luna Founders Wanted For Violating Capital Markets Laws

A court located in South Korea’s capital Seoul has reportedly issued a warrant for Do-Kwon and five others on several claims, including violation of the country’s capital market laws. According to the Seoul Southern District Prosecutor’s Office’s Financial and Securities Crime Unit, the arrest warrants were requested and issued against the Terraform Labs officials, including CEO and co-founder Kwon Do-hyeong, a founding member of Nicholas Plates, and Han Mo, a Terraform Labs employee. 

The Prosecutor’s office alleges that the cryptocurrencies within the Terra ecosystem, TerraUSD (UST) and TerraLuna (LUNA), all fell under “investment contract securities” under the Capital Market Act. The Act defines an investment contract security as a security where “money is invested in a joint project in the hope of making a profit, and a payment is received according to the result.” It is alleged that Terraform Labs issued its tokens as securities, subjecting them to South Korea’s security laws.

At the time of issuing the warrant, all key members of the Terra company were residing in Singapore, including Do Kwon. In a recent interview, Kwon claimed that no South Korean investigators have ever contacted him and that it was difficult for him to decide whether to return to Korea. 

According to the warrant, the prosecution plans to collaborate with international law enforcement bodies such as Interpol and use such measures as passport invalidation to ensure justice is served. 

UST/LUNA Collapse Marked The Beginning Of Do Kwon’s Woes

By May this year, LUNA had climbed to be among the top 10 cryptocurrencies in the world by market capitalization. Its sister token, UST, became the 3rd largest dollar-pegged stablecoin. But in mid-May, following what was referred to as a coordinated and focused attack on UST, the Terraform ecosystem collapsed after the stablecoin de-pegged from the dollar. 

As a result, LUNA’s price dropped by more than 99.99% as investors swiftly dumped the altcoin in what was likened to a bank run-in. Investors then sued Kwon and his colleagues for violating the Capital Markets Laws on the Regulation Fraud and Similar Receipts under the Special Offer Act. 

The UST/LUNA debacle caused one of the most devastating market crashes in the history of cryptocurrencies marking the start of the 2022 bear market. This triggered the loss of UST and LUNA (now renamed Terra UST Classic – USTC and Luna Classic – LUNC, respectively), worth millions of dollars by investors.

Terra’s crash also took several decentralized finance (DeFi) protocols, leading to an up to 80% decline in most of the projects associated with the stablecoin. Crypto lending, borrowing, and crypto hedge firms also went down, including Three Arrows Capital (3AC), Galaxy Digital, and Celsius.

At the time of writing, LUNC was down 20% on the day to trade at $0.00028, undoing all gains made on Tuesday. 

Tags: BlockchaincryptoWeb3
TweetShareShare

Recommended For You

Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting

by BlockNews Team
March 22, 2023
0
xrp

Coinbase could relist the XRP token if Ripple wins the ongoing lawsuit against the SEC. The exchange will initiate the relisting process immediately after the court pronounces itself...

Read more

Solana’s Top DEX Orca Restricts Access For American Users

by BlockNews Team
March 22, 2023
0
orca.so

US-based users will be banned from trading on Orca’s web interface beginning March 31st. Orca said the ban exempts those who trade directly using smart contracts and their...

Read more

DefiLlama Forks into a New Platform as Internal Disputes Unfolds

by BlockNews Team
March 22, 2023
0
DefiLlama

Blockchain data platform DefiLlama is in turmoil following its employee's rejection of its Token Launch Plan.  Now, the creators of one of DeFi's prominent dashboards have made a...

Read more

Massive USDT Transfer – Is This The Reason Behind The Current Crypto Market Shift?

by BlockNews Team
March 21, 2023
0
USDT

The crypto market has witnessed a dramatic couple of weeks, leading to uncertainties about what the future holds for the digital asset sector. Crypto debunking in the United...

Read more

Sony & NFTs? Sony Announces Cross-Platform NFT Framework

by BlockNews Team
March 21, 2023
0
sony logo

An online patent suggests that tech giant Sony Interactive is exploring the use of NFTs on their PlayStation Platform. The patent's details can get complicated in parts, but...

Read more
Next Post
Polygon-Logo

Polygon To Add 200 Jobs, Increase Workforce By 40%

Related News

NFTs, DAOs, and the Necessity of Roadmaps for Blockchain Projects

NFTs, DAOs, and the Necessity of Roadmaps for Blockchain Projects

May 4, 2022
australia crypto

Australia Supports Crypto Watchdogs in a Step-by-Step Plan to Stop Scammers

February 7, 2023
CoinGecko-App

What is CoinGecko?

November 4, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Ripple-SEC Case: XRP Price Turns Bullish As Coinbase Hints At Relisting March 22, 2023
  • Solana’s Top DEX Orca Restricts Access For American Users March 22, 2023
  • DefiLlama Forks into a New Platform as Internal Disputes Unfolds March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?