South Korea’s Financial Crimes Unit issued an arrest warrant against Do Kwon

The Financial Crimes Unit of the Supreme Prosecutors Office in South Korea has issued an arrest warrant against Do Kwon, the co-founder of the now defunct stablecoin issuer Terraform Labs, according to Bloomberg News. The warrant also includes five additional persons. They are all charged with violating the Capital Markets Act, the report said.

The warrant comes four months after the collapse of the $40 billion Terra ecosystem and its algorithmic UST, which was the first domino to fall in this year’s crypto winter. The contagion that followed caused an industry-wide fallout, with companies like Celsius Network and Voyager Digital filing for bankruptcy as the value of digital assets slumped by more than 50% from their respective highs.

Singapore-based hedge fund Three Arrows Capital became the latest entity to file for bankruptcy after it was revealed that it had a significant exposure to Terraform Labs’ ecosystem.

The Financial Crimes Unit of the Supreme Prosecutors Office in South Korea has issued an arrest warrant against a co-founder of a stablecoin issuer, according to Bloomberg News. The warrant also included other people, who are now all charged with violating the Capital Markets Act.”