Arrest warrant issued for man blamed for crypto winter

What just happened? Do Kwon, founder and CEO of Terraform Labs, the company he blames so much for starting the crypto winter, has issued an arrest warrant for him in South Korea and he may be forced to return to the country.

Back in May, TerraUSD (UST), an arithmetic stablecoin that was then the 11th largest cryptocurrency by market cap, has crashed From pegging its currency to the US dollar and it fell close to zero, bolstering the Luna currency with it. About $60 billion combined have been wiped off the value of both tokens. The drop affected the entire cryptocurrency industry, which saw its overall market capitalization Decreased to less than 1 trillion dollarsAnd the layoffs And the bankruptcies In major companies and miners Give up the work.

according to BloombergKwon, Kun and five others, all listed in the memo as living in the city-state of Singapore, are the subject of an arrest warrant issued by a South Korean court on charges of violating the Capital Markets Act.

The authorities are now trying to force Kwon to return to South Korea by seeking to cancel his passport. If the foreign ministry approves the request, Kwon would theoretically have to return to his home country within 14 days, although the ministry said it was possible for Kwon to remain in Singapore without a passport.

In July, prosecutors raided the home of Terraform Labs co-founder Daniel Sheen, as part of an investigation into the illegal activities behind the TerraUSD collapse. Reg Notes Current and former Terraform employers are prohibited from international travel.

Some Luna investors have filed complaints against Kwon, alleging that he was involved in fraud and illegal fundraising. Kwon said earlier that he plans to cooperate with the authorities. “Obviously, as in hindsight, a lot of the beliefs and the kind of guesses I made were wrong,” he said of the breakdown.

Kwon has created a new version of color after a previous crash. Its price fell 45% to $2.40 after news of the arrest warrant. He appears to be philosophical about the possibility of him going to prison. When asked about such a possibility before coinageKwon said, “Life is long.”

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