Arrest Warrant Issued for Terra Founder Do Kwon

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  • An arrest warrant has been issued for Terra founder Do Kwon
  • Seoul’s Financial and Securities Crime Unit is seeking to charge him over his role in the Terra collapse
  • Kwon is one of six sought by police in connection with the collapse

A court in South Korea today issued an arrest warrant for Do Kwon, founder of the Terraform Labs cryptocurrency ecosystem which collapsed earlier this year, wiping out $60 billion in investment and setting off the crypto contagion that still impacts the space today. Details are sketchy at this point, but it appears that an Interpol red notice has also been issued, which is important because Kwon is currently in Singapore which doesn’t have an extradition deal with South Korea.

Kwon and Five Others Sought

Local news services reported this morning that Kwon and five others connected to Terra are being sought by law enforcement relating to a violation of capital market rules. According to local sources, the Seoul Southern District Prosecutor’s Office’s Financial and Securities Crime Unit issued the arrest warrants against Terra executives residing in Singapore, including founding members Kwon and Nicholas Platias.

Prosecutors are known to believe that cryptocurrencies Terra USD and Luna are considered “investment contract securities” under the Capital Market Act, and it may well turn out that Kwon’s cavalier attitude towards the protocol and the tens of millions of dollars were tied up in it could come back to haunt him.

Lawsuits Already in Play

Kwon is already the subject of several lawsuits, and many believed it was only a matter of time before he was being sought by law enforcement for his actions. He gained notoriety for dismissing any suggestions his Terra protocol could fail, which only added to the negative light in which he was seen by the community, and the schadenfreude over his demise has only been matched by the despair he has left behind in his bombastic and patronising wake.