Investigation teams composed of five prosecutors from the Seoul Southern District Prosecutor's Office issued an arrest warrant against Do Kwon, co-founder, and CEO of Terraform Labs, over violation of the Capital Markets Act.
The arrest warrant was issued four months after the crash of the LUNA token and Terra ecosystem, which resulted in a loss of over $40B worth of funds worldwide and sent ripples throughout the crypto industry, causing crypto lenders such as Celsius Network, Hodlnaut, and Voyager Digital to go bankrupt.
South Korean prosecutors have been hot on Terraform Labs’ trail ever since they accused Do Kwon and Terraform Labs of running a Ponzi scheme in May. Moreover, the joint investigation team, nicknamed the “Grim Reaper of Yeoido,” launched a probe into seven crypto exchanges and raided Terraform Labs' co-founder's house in July.
Besides Do Kwon, arrest warrants were issued against five other Terraform Labs associates, including a founding member and an employee of the firm. The arrest warrant, valid for one year, accuses them of violating the Capital Markets Act.
Kwon and the other employees are believed to be in Singapore, with sources citing that the prosecutors may take drastic measures such as invalidating the suspects’ passports and requesting Interpol to issue a red notice to extradite them to South Korea.
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