A South Korean court docket has issued an arrest warrant for Do Kwon, the first developer of cryptocurrencies Luna and TerraUSD, whose spectacular collapse in Could roiled crypto markets all over the world.
Kwon, additionally the founding father of blockchain platform Terraform Labs, has been accused of fraud by buyers within the wake of the collapse.
“An arrest warrant has been issued for a complete of six folks, together with Do Kwon, who’re at present residing in Singapore,” a spokesperson for prosecutors mentioned on Wednesday with out elaborating.
Kwon didn’t instantly reply to a Reuters e mail looking for remark.
The arrest order comes after months of investigation, together with search and seizure operations at associated workplaces and native cryptocurrency exchanges.
TerraUSD, a so-called stablecoin that was as soon as among the many prime 10 cryptocurrencies globally by market worth, broke its 1:1 peg to the US greenback in Could, plunging in worth and sending paired token Luna plummetting with it.
In line with blockchain analytics agency Elliptic, buyers within the two cash misplaced an estimated $42 billion.
The market turmoil that ensued led to the failure of a number of main crypto corporations together with US crypto lender Celsius and Singapore-based crypto fund supervisor Three Arrows Capital.
In an August video interview with crypto media platform Coinage, Kwon mentioned he had moved to Singapore due to issues about his household’s security and rejected ideas that the relocation was because of the crash or an try to evade investigators.