Terra and the instability of "stablecoins" 2:09
(Reuters) --
A South Korean court has issued an arrest warrant for Do Kwon, the main developer of the Luna and TerraUSD cryptocurrencies, whose spectacular crash in May rocked crypto markets around the world.
Kwon, also the founder of blockchain platform Terraform Labs, was accused of fraud by investors in the wake of the crash.
"An arrest warrant has been issued for a total of six people, including Do Kwon, who are currently residing in Singapore," a spokesman for prosecutors said on Wednesday without giving further details.
Kwon did not immediately respond to an email from Reuters seeking comment.
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The arrest warrant comes after months of investigation, including search and seizure operations at related offices and local cryptocurrency exchanges.
TerraUSD, a purported stablecoin that was once among the top 10 cryptocurrencies globally by market value, broke its 1:1 peg to the US dollar in May, sinking its value and causing the paired token Luna to plummet with the.
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According to blockchain analytics firm Elliptic, investors in the two coins lost approximately $42 billion.
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The ensuing market turmoil led to the bankruptcy of several major crypto firms, including US crypto lender Celsius and Singapore-based crypto fund manager Three Arrows Capital.
In an August video interview with crypto media platform Coinage, Kwon said that he had moved to Singapore due to concerns about his family's safety and rejected suggestions that the relocation was due to the accident or an attempt to evade. the researchers.
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