Cryptocurrency

South Korea Declares Do Kwon Wanted Over $40 Billion Failed Cryptocurrency Investment

Following the collapse of the $40 billion Terra ecosystem, a South Korean court has issued an arrest warrant to pick up Do Kwon, the co-founder of the now defunct stablecoin issuer Terraform Labs

According to the financial crimes unit of the Supreme Prosecutors’ Office, the warrant included five additional individuals, Bloomberg said in a report that cited a text message from the prosecutor’s office.

The six of them were charged with violating the Capital Markets Act of South Korea, the report noted.

The warrant comes four months after the collapse of the $40 billion Terra ecosystem and its algorithmic stablecoin (UST), which was the first domino to fall in this year’s crypto winter.

The contagion that followed caused an industry-wide fallout, with crypto lender Celsius Network and crypto broker Voyager Digital filing for bankruptcy as the value of digital assets slumped by more than 50% from their highs.

Singapore-based hedge fund Three Arrows Capital was another firm that filed for bankruptcy after the extent of its exposure to the Terra network was exposed. The implosion of Three Arrows left a trail of troubled loans across the crypto industry, with billions being owed to creditors.

In his first public interview last month, Kwon had maintained that he is cooperating with authorities. Terra didn’t immediately respond to a request for comment.

Kwon also reiterated his commitment to the Terra ecosystem and its re-launched terra token (LUNA). The token has slumped by 16.7% over the past hour.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

How Nigeria’s National Power Grid Collapsed Ten Times Within 9 Months 

The national power grid has again collapsed, leaving many Nigerians in total darkness. Investors King…

3 hours ago

Darkness Falls Again: TCN Explains Latest National Grid Collapse

The Transmission Company of Nigeria (TCN) has provided an explanation for the latest National Grid…

3 hours ago

FG Abolishes 18-Year Age Benchmark For Admission Into Tertiary Institutions

The new Minister of Education, Tunji Alausa, has abolished the controversial 18-year admission benchmark for…

3 hours ago

Gov Aiyedatiwa Signs ₦96 Billion Supplementary Budget Into Law, Hails Ondo House of Assembly For Swift Passage

The Governor of Ondo State, Lucky Aiyedatiwa, has expressed gratitude to the State House of…

3 hours ago

EFCC Nabs Ex-Delta Governor, Okowa, For Alleged N1.3trn Fraud

Operatives of the Economic and Financial Crimes Commission (EFCC) have arrested former Delta State Governor,…

3 hours ago

FG Frees Minors Remanded For Protesting Hunger In Nigeria

Some minors who joined the nationwide #EndBadGovernance in Nigeria have regained their freedom. Their release…

3 hours ago