South Korea issues an arrest warrant against the fallen crypto king Do Kwon

A South Korean court issued an arrest warrant against Do Kwon, the co-founder of the collapsed cryptocurrency operator Terraform Labs, due to the alleged violation of the capital market regulations after the $ 40 billion-dollar implosion at the beginning of this year.

The court also issued arrest warrants against five other people on Wednesday who are connected to Terraform Labs and are in Singapore, according to a spokesman for the public prosecutor's office in the southern district of Seoul. Daniel Shin, the co -founder of Terraform Labs, was not among the five other people.

Prosecutors have accused Kwon of financial fraud and argues that his stable coin Terrausd was a kind of investment security under the South Korean capital market law. They believe that Kwon is in Singapore, but refused to say whether they had found him.

The spokesman said that the prosecutors checked "many ways" to arrest and deliver them from Singapore, including the cooperation with Interpol or the cancellation of his South Korean passport. Singapore is not on South Korea's list of bilateral delivery agreements.

Terraform Labs and Do Kwon could not be achieved immediately for a statement.

The competitive crypto entrepreneur said last month in an interview that he had no contact with the South Korean authorities. The 31-year-old told the crypto media start-up coinage that it was "somehow difficult" to decide whether to return to Korea because "we never had contact with the investigators".

The South Korean public prosecutor's office and the police investigate Kwon and his company after two complaints were submitted for allegations on behalf of 81 investors that the company had deceived investors.

Kwon visited a foreign language elite high school in Seoul and studied computer science at Stanford University. In 2018, he founded Terraform Labs in Singapore together with Daniel Shin, the prominent founder of the South Korean E-Commerce-Inhorns Ticket Monster, Terraform Labs.

The couple launched the Terrausd StableCoin in 2020. Stablecoin had an algorithmic relationship with the Luna cryptocurrency, which reached its maximum at the beginning of April at $ 116, but collapsed to zero in May.

The meltdown affected hundreds of thousands of investors, many of whom were attracted to a program in which customers were able to lend their terra for a return of 20 percent.

The so-called "anchor protocol", the mechanism through which the 20 percent return was offered to investors, is one of the areas of interest for the examination.

The severe losses borne by Korean crypto investors made the brazen and split kwon in his homeland in South Korea, according to media reports about several suicides in connection with the collapse to a villain.

In an interview with Coinage, Kwon said that he counts himself to the victims of the crash.

"I don't want to give the impression that my losses in relation to the emotional effect are greater than in people who had less to do [in their] whole life savings and then the Terra system went out," said Kwon. "[But] that was essentially my life.. I bet a lot and I think I lost."