Do Kwon

A South Korean court issued an arrest warrant for Do Kwon, the co-founder of collapsed cryptocurrency operator Terraform Labs, over allegedly violating ...

[Purchase a Print subscription for 11,12 € per week You will be billed 107,91 € per month after the trial ends](https://subs.ft.com/spa3_uk3m?segmentId=461cfe95-f454-6e0b-9f7b-0800950bef25&utm_us=JJIBAX&utm_eu=WWIBEAX&utm_ca=JJIBAZ&utm_as=FIBAZ&ft-content-uuid=7a8f63e8-b337-4685-81fb-36054b05f651) [Purchase a Digital subscription for 6,64 € per week You will be billed 39 € per month after the trial ends](https://subs.ft.com/spa3_digital?ft-content-uuid=7a8f63e8-b337-4685-81fb-36054b05f651) [Purchase a Trial subscription for 1 € for 4 weeks You will be billed 65 € per month after the trial ends](/signup?offerId=41218b9e-c8ae-c934-43ad-71b13fcb4465&ft-content-uuid=7a8f63e8-b337-4685-81fb-36054b05f651)

South Korean officials are seeking to arrest Do Kwon, the developer behind the collapsed stablecoin TerraUSD. Mr. Kwon and the company he founded, ...

But earlier this year, the crypto equivalent of a run on the bank shook both TerraUSD and Luna, wiping out billions of dollars worth of savings in days. Kwon, a South Korean, had been based in Singapore.\n\nA so-called stablecoin, TerraUSD was supposed to maintain a one-to-one link to the dollar thanks to financial engineering. Kwon and the company he founded, Terraform Labs, have come under scrutiny after two cryptocurrencies—TerraUSD and Luna—created by the company crashed earlier this year.

A court in South Korea has issued an arrest warrant for Do Kwon, the founder of Terraform Labs, after the firm's crypto ecosystem lost $40 billion.

Click here to find out more about our partners. Find out more about how we use your information in our Privacy Policy and Cookie Policy. You can select 'Manage settings' for more information and to manage your choices.

Terra's UST and its sister LUNA tokens lost nearly $45 billion (€44 billion) in value within 72 hours in May after it imploded.

He also said he was cooperating with authorities and reiterated his commitment to Terra. Stablecoins claim to be a relatively safe haven in the highly volatile crypto market. The report also said adding that five other persons were included in the warrant.

Do Kwon, the maligned founder of Terraform Labs, has been issued an arrest warrant by South Korean authorities on breaches to capital markets law.

likely a mixture of both is the culprit. As for LUNC, it looks to be heading in a downward position for the moment but given the utter unpredictability of the markets, the story might be different next week. With all the furore over Do Kwon’s arrest and LUNC’s revival, it’s easy to forget that Terra 2.0 (that's Do Kwon's project) is meant to be a blockchain ecosystem with some real-world use to justify its existence. But just as we saw with GameStop and AMC, a short squeeze can only squeeze for so long and it looks like the grip is slipping on LUNC. Do Kwon may have abandoned stakeholders and refocused his attention on a fresh relaunch, but for token holders with billions on the line, the story wasn’t over. [Bloomberg](https://www.bloomberg.com/news/articles/2022-09-14/south-korea-seeks-the-arrest-of-terraform-labs-founder-do-kwon?sref=17Td6NBb), the Seoul courts issued a warrant for Do Kwon and five others, all of whom currently reside in Singapore.

A South Koren court has issued an arrest warrant against Do Kwon, the Co-Founder of the collapsed stablecoin issuer, Terraform Labs.

In contrast, a method and procedure are negotiated through the courts to satisfy the obligations of the company. The filing of bankruptcy is considered a last resort when businesses and persons have not been able to negotiate terms directly with their creditors. The price of the token has plummeted by 35 percent in the last few hours, as of press time. Chapter 7 is a liquidation procedure, where all assets are sold, and the court oversees the distribution of the money to creditors based on their standing. Chapter 11 is a reorganization process where businesses are allowed to freeze their debts and continue to operate. Chapter 13 is called a wage earner plan and helps people attempt to restructure their debts to repay their debts. The companies that issue these currencies must have fiat reserves in the equivalent amount of the stablecoins they have issued.Crypto-pegged stablecoins constitute coins that are tied to a specified amount of another cryptocurrency, such as Bitcoin or Ethereum. Different Kinds of Bankruptcy In the US, these legalities are referred to as Chapters 7 and 11, 12, and 13. Since bankruptcy is a legal state, once the petition is filed with the appropriate court, local and state laws vary greatly. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. That was a part of the probe into the establishing criminal activities behind the Terra collapse. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary.

Do Kwon, the maligned founder of Terraform Labs, has been issued an arrest warrant by South Korean authorities on breaches to capital markets law.

likely a mixture of both is the culprit. As for LUNC, it looks to be heading in a downward position for the moment but given the utter unpredictability of the markets, the story might be different next week. With all the furore over Do Kwon’s arrest and LUNC’s revival, it’s easy to forget that Terra 2.0 (that's Do Kwon's project) is meant to be a blockchain ecosystem with some real-world use to justify its existence. But just as we saw with GameStop and AMC, a short squeeze can only squeeze for so long and it looks like the grip is slipping on LUNC. Do Kwon may have abandoned stakeholders and refocused his attention on a fresh relaunch, but for token holders with billions on the line, the story wasn’t over. [Bloomberg](https://www.bloomberg.com/news/articles/2022-09-14/south-korea-seeks-the-arrest-of-terraform-labs-founder-do-kwon?sref=17Td6NBb), the Seoul courts issued a warrant for Do Kwon and five others, all of whom currently reside in Singapore.

The court in Seoul issued a warrant for all of them, with allegations against them that include violations of the nation's capital markets law. Do Kwon didn't ...

[Telegram](https://t.me/mothershipsg) to get the latest updates. [tumbled to near zero](https://mothership.sg/2022/05/police-report-singapore-luna-crypto/). [Do Kwon](https://mothership.sg/2022/05/do-kwon-trespassing/), the founder of the Terraform Labs cryptocurrency ecosystem, and five others, all of whom are located in Singapore, the prosecutor’s office said, according to [Bloomberg](https://www.bloomberg.com/news/articles/2022-09-14/south-korea-seeks-the-arrest-of-terraform-labs-founder-do-kwon).

The warrant from the Supreme Prosecutors Office was issued for five others who worked at Terra, with South Korean authorities accusing them of violating the ...

[stablecoin](https://coingeek.com/bitcoin101/go-cashless-the-rise-of-stablecoins-as-payment/) sister project, was the third-largest stablecoin after Tether and USDC. South Korean police had been openly investigating Terra for months, to the extent of [raiding](https://www.bloomberg.com/news/articles/2022-07-22/terra-founder-s-home-raided-as-korea-widens-crypto-failure-probe#xj4y7vzkg) the home of Daniel Shin, one of the Terra cofounders. With the support of exchange heads [like Kraken’s Jesse Powell](https://coingeek.com/kraken-ceo-jesse-powell-lunacy-as-exchange-that-banned-bsv-pump-air-back-into-terra/), he has found a new lease on life, but with authorities closing in, it might not be for long. [interview](https://www.coinage.media/s1/inside-cryptos-largest-collapse-with-terras-do-kwon), which was his first since the May collapse, Kwon claimed that South Korean authorities hadn’t reached out about the Terra crash. [report](https://www.chosun.com/national/court_law/2022/09/14/2YBHH4ZQKFCKBJJPENIHHQYOOQ/), the warrant was issued by the Seoul Southern District Prosecutors’ Office. In an August interview, he claims to have moved from (read: fled) South Korea before the collapse of his project in May, taking his family with him.

South Korea is seeking to arrest half a dozen people, including Terraform Labs founder Do Kwon, over alleged violation of capital markets laws.

[rare media appearance](/finance/37480-do-kwon-there-was-probably-a-mole-exploiting-terra) to present his account of the crypto collapse and the aftermath that followed. And when asked about the prospect of jail time, he said: «Life is long». He also spoke about being undecided on returning to his home country of South Korea, claiming that authorities at the time had yet to contact him or issue any charges and that he planned to cooperate in due time.