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.