Home MarketsAsia A South Korean court has issued an arrest warrant for Terraform founder Do Kwon

A South Korean court has issued an arrest warrant for Terraform founder Do Kwon

by SuperiorInvest

Do Kwon, co-founder and CEO of Terraform Labs, poses Thursday, April 14, 2022, at the company’s office in Seoul, South Korea.

Woohae Cho | Bloomberg | Getty Images

A South Korean court issued an arrest warrant for Terraform founder Do Kwon on Wednesday, Reuters reported, citing a prosecutor’s spokesman.

An investigation into the founder of blockchain platform Terraform Labs, the company behind the algorithmic stablecoin UST, is escalating in the wake of Project Terra. spectacular collapse earlier this year.

The May the Terra platform implosion resulted in combined losses of approximately $60 billion between UST and its sister cryptocurrency luna.

UST, a controversial stablecoin that was supposed to be pegged to the US dollar 1:1, separated from its target price in mid-May and triggered a broader selloff in cryptocurrencies from which the digital asset sector has yet to recover.

In June, Reuters reported that an unnamed official at South Korea’s Supreme Prosecutor’s Office said several Terraform Labs employees could not leave the country and were placed on a no-fly list.

A spokesman for South Korea’s Supreme Prosecutor’s Office was not immediately available for comment when contacted by CNBC on Wednesday morning.

bitcoin last traded at $20,380 on Wednesday morning in London.

The world’s largest cryptocurrency climbed back above the psychologically important $20,000 mark last week after falling below the $19,000 level for the first time since June earlier in the month.

— CNBC’s Tanaya Macheel contributed to this report.

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