Shadine Taufik · · 1 min readArrest looms for Terraform Labs founder as Seoul court issues warrant
Terraform Labs founder Do Kwon faces arrest after a court in Seoul issued a warrant against him and five other individuals for violating South Korea’s capital markets laws and other allegations, Bloomberg reported.
The prosecutor’s office added that the six individuals are in Singapore, where Terraform Labs is based.
Kwon’s company, which he established in 2018 with Daniel Shin, operates Terra, a crypto blockchain that creates stablecoins linked to fiat currencies like the US dollar.
The warrant comes after the Terra ecosystem crashed in May, resulting in global losses of over US$40 billion. Much of this amount has yet to be recovered, jeopardizing crypto firms worldwide including Three Arrows Capital, Vauld, Celsius Network, Finblox, Hodlnaut, and Vauld.
Shin has also been investigated by South Korean police after his home was raided in July for “illegal activity” related to the Terra debacle.
Editing by Miguel Cordon and Eileen C. Ang
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