Kwon’s legal woes continue.
Following the ongoing investigation into the collapse of the Terra project, a South Korean court has issued an arrest warrant for Do Kwon, the CEO, and founder of TerraForm Labs (TFL).
Citing a message from the prosecutors’ office, Bloomberg reported today that the Seoul court ordered the arrest of Kwon and five others, who are believed to be key players in the Terra project.
The development was also shared on Bloomberg Crypto’s Twitter account, an account created on the microblogging platform to focus on crypto-related incidents.
BREAKING: South Korea issues an arrest warrant for crypto firm founder Do Kwon as it probes alleged illegal activity behind collapsed stablecoin TerraUSDhttps://t.co/7Ahn0SipCe pic.twitter.com/rcieujKhw5
— Bloomberg Crypto (@crypto) September 14, 2022
Notably, the warrant to arrest Kwon and the five other people is related to a violation of Korean capital market rules, believed to have contributed to the massive collapse of the Terra project.
“A court in South Korea issued an arrest warrant for Do Kwon, the founder of the Terraform Labs cryptocurrency ecosystem, whose $40 billion wipeout earlier this year sparked a global crypto rout.”
Korean media Says, “South Korean prosecutors issued a one-year arrest warrant for Do Kwon currently living in Singapore. Red notices by Interpol will be issued to detain Kwon, Terraform Labs co-founder Nicholas Platias and others.”
Recall that following the collapse of the Terra project, Kwon and other top execs of TFL have been under extensive investigation in the United States and South Korea.
Korea had to revive a special crime unit, which will focus on the investigation of the Terra incident as well as other cryptocurrency-related crimes.
Despite the widespread investigation of the Terra collapse, Kwon has insisted on his innocence, adding that he is committed to building Terra to compensate investors for their losses and would not like to be distracted.