A court in Seoul, South Korea, issued a warrant of arrest against the CEO of Terraform Labs, Kwon Do, and five other people for violating the country’s capital markets law, Bloomberg reports.

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The Terra ecosystem collapse cost investors over $40 billion in loss around the world, especially to Koreans. The nation had attached high hopes for LUNA/UST that failed to meet the expectations.


The sudden crash affected the whole crypto market as it was quite unexpected for the third-largest cryptocurrency to drop almost 99.9%. Despite claims of recovery, Terra failed to bring back LUNA.

This resulted in the collective bankruptcy of venture capitalists, lending platforms, and other crypto firms, affecting the whole blockchain market.

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Since then, Kwon Do and his team have gone into hiding somewhere in Singapore. As a result, many Korean investors filed a lawsuit against Terra, and the prosecutors began their investigation.

Last month, the prosecutors raided the house of co-founder Daniel Shin and requested the court to issue an arrest warrant for Kwon Do as soon as he touched the grounds of South Korea.

Will the arrest warrant affect LUNA prices? This is the question many traders have in mind. As of now, Terra hasn’t shared any details on how they will deal with this case.

On the other hand, LUNA 2.0 is rising in the crypto market at an all-time high becoming the most successful coin in Q3 of 2022, showing that traders are actively buying the newly dropped crypto coin.

A recent report by Bloomberg reads that a court in Seoul has issued an official arrest warrant for Kwon Do and his five companions. Kwon Do has refused to give a statement on this news.