1 October 2026
South Korean Court Issues Arrest Warrant For Terra Co Founder Do Kwon
Amid the ongoing investigation into the collapse of the Terra ecosystem, the Seoul court has issued an arrest warrant for Do Kwon, the CEO, and founder of TerraForm Labs.
The warrant was issued in relation to a violation of capital market rules and targets five more individuals who are currently residing in Singapore.
In May, Terraform Labs’ algorithmic stablecoin UST and LUNA drastically crashed, resulting in the wipeout of at least $40 billion of investors' wealth.
The collapse of the Terra ecosystem also impacted the crypto market as the price of Bitcoin plummeted from $40,000 at the beginning of May to $27,000 in just two days.
Additionally, during that phase many high-profile cryptocurrency lending firms and brokers, including Celsius, Three Arrows Capital (3AC), and Voyager Digital, go bankrupt.
In July, prosecutors of South Korea raided the home of Terraform Labs co-founder Daniel Shin as part of a probe into allegations of illegal activity behind Terra’s collapse.
A class-action lawsuit was also filed against Kwon and Terraform Labs in June in the U.S. District Court in Northern California.
Kwon denied all the allegations the project was a “fraud.” He claimed that he has lost nearly all his net worth in Terra’s crash.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice
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