South Korea Issues Arrest Warrant for Terra/LUNA Crypto Founder Do Kwon

The latest episode in the whole Terra/LUNA debacle – which saw $40 billion in crypto evaporating in a few hours – showcases that the crypto world doesn’t operate within its own locked ecosystem. A court order for the arrest of Terra founder Do Kwon and five others was issued this Wednesday morning, on charges of violating the Capital Markets Act. LUNA fell 36% in the past 24 hours while LUNC (Luna Classic, representing the circulating LUNA tokens before the UST stablecoin’s catastrophic depeg from the dollar value) dropped 25%, with much of the price movement coming after news of the warrant was made public on Wednesday morning.

The Terra/LUNA debacle brought about billions in losses across the cryptocurrency ecosystem, with multiple companies in the crypto finance area (from DeFi [Decentralized Finance] through CeFi [Centralized Finance] players such as Celsius Network, Voyager Digital and Three Arrows Capital claiming bankruptcy as their Terra/LUNA investments and reserves trended towards zero value. Accusations have been spread left and right that Terra/LUNA operated like a Ponzi Scheme – it remains to be seen whether that’s the interpretation of the South Korea justice system.