South Korean prosecutors have reportedly issued an arrest warrant for the founder and chief executive of Terraform Labs, Do Kwon, and 5 other people.
According to the prosecutors, the CEO and co-accused were in violation of the capital markets law of the country.
Not only have the authorities issued the arrest warrant, but they also intend on asking for a red notice from Interpol for the chief executive of Terraform Labs.
Do Kwon in trouble
The latest reports show that Do Kwon, the co-founder, and CEO of Terraform Labs has had an arrest warrant issued against him by South Korean prosecutors.
Amongst other charges, the prosecutors have alleged that Kwon and five of his affiliates at Terraform Labs violated the capital markets law of the country.
A prosecutor at the Southern District Prosecutor’s Office in Seoul, Choi Sung-kook confirmed the news of the arrest warrant’s issue.
However, the report indicated that the prosecutor did not reveal the other charges that have been brought against the CEO and his five affiliates.
Kwon and his associates have been under investigation since the massive collapse of the stablecoin UST (now USTC) and the crypto token LUNA (now LUNC).
But, they had not issued any arrest warrant against Kwon or his associates before now.
Interpol red notice
Another report had quoted an unnamed spokesperson on behalf of the prosecutors who had confirmed that an arrest warrant had been issued for six people.
The spokesperson said that the arrest warrant was for six people, which included Do Kwon, who is currently based in Singapore.
Other than Kwon, the report also showed that Nicholas Platias, who had also been part of Terraform Labs as the head of research, as another wanted individual.
Likewise, the chief executive of Chai Corporation, who is also called ‘Han’, was also one of the individuals against whom the arrest warrant was issued.
Other than the arrest warrant, the prosecutors from South Korea also said that they would get in touch with Interpol to ask it to issue a red notice for the CEO of Terraform Labs.
Luna’s price
The reports of an arrest warrant being issued for Kwon and his five affiliates by South Korean prosecutors have come just days after Luna 2.0’s price saw a surge of a whopping 200% within 24 hours.
The crypto token is the successor of Luna, which saw a massive rise in price, but it did come down again. At the time of writing, the price of the token in US dollars had dropped from $6.87 to $2.90.
It should be noted that this is not the first time that South Korean authorities had taken an interest in the activities of Do Kwon.
The collapse of Terraform Labs had drawn the attention of regulatory authorities in the country because it had resulted in massive losses for investors in the crypto market.
There had been reports of him being investigated for defrauding people through Terraform Labs, but nothing conclusive had been said.