A South Korean court has issued an arrest warrant for Terraform Labs co-founder Do Kwon, according to a local news report.
Arrest warrants were issued against Do Kwon and five others, some of whom currently reside in Singapore. These include Terraform Labs founding member Nicholas Platias, and Han Mo, a Terra employee.
The primary charges being pursued are for violations of the Capital Markets Act. Prosecutors allege that the cryptocurrencies UST and LUNA fall under “investment contract securities”.
At the time of writing, all of the founding members of Terraform Labs that have been issued with an arrest warrant, including founder Do Kwon, are residing in Singapore.
In his first public interview since the fallout, Kwon reassured the crypto industry that he is “fully cooperating” with local authorities but said it was “difficult” for him to make the decision to return to Korea.
The arrest warrant, which is valid for one year, might make the decision to return home a little easier when Interpol gets involved over the coming weeks.
Kwon, who goes by the handle @stablekwon on Twitter has proved to be anything but. Kwon is now infamous for co-founding the Terra ecosystem, which on May 11 collapsed to near-zero, triggering an US$83 billion DeFi contagion and nearly taking the entire crypto market down with it.
The fallout from Terra’s algorithmic stablecoin (UST) demise caused several governments around the world to begin pursuing more stringent stablecoin regulation, not to mention a steamy burn to the reputation of the industry The collapse also revealed some extremely poor balance sheet management from high-profile trading funds such as Three Arrows Capital and Voyager Digital.
Last week, prominent Ethereum educator Anthony Sassano tweeted to his 222,000 followers “Why is Do Kwon still not in prison?”
This recent news might just see Sassal’s wish answered.