SEOUL, Sept 14 (Reuters) – A South Korean court has issued an arrest warrant for Do Kwon, the primary developer of cryptocurrencies Luna and TerraUSD, whose spectacular collapse in May roiled crypto markets around the world.
Kwon, also the founder of blockchain platform Terraform Labs, has been accused of fraud by investors in the wake of the collapse.
"An arrest warrant has been issued for a total of six people, including Do Kwon, who are currently residing in Singapore," a spokesperson for prosecutors said on Wednesday without elaborating on the reason.
Kwon did not immediately reply to a Reuters email seeking comment. The Singapore Police Force also did not immediately respond to a request for comment.
The arrest order comes after months of investigation and amid public outrage in South Korea over the collapse. Globally, investors in the two coins lost an estimated $42 billion, according to blockchain analytics firm Elliptic.
TerraUSD, a so-called stablecoin that was once among the top 10 cryptocurrencies globally by market value, broke its 1:1 peg to the U.S. dollar in May, plunging in value and sending paired token Luna plummetting with it. Unlike most other major stablecoins which are backed by other assets, TerraUSD's value was derived by complex algorithmic processes. read more
The market turmoil that ensued led to the failure of several major crypto companies including U.S. crypto lender Celsius and Singapore-based crypto fund manager Three Arrows Capital. read more
In an August video interview with crypto media platform Coinage, Kwon said he had moved to Singapore because of concerns about his family's safety and rejected suggestions that the relocation was due to the crash or an attempt to evade investigators.
Worldwide, several cryptocurrency developers have been arrested on a range of charges.
Dutch authorities last month arrested a 29-year-old man believed to be a developer for the crypto mixing service Tornado Cash on suspicion of money laundering. read more
In May, Arthur Hays the co-founder and former chief executive of the cryptocurrency exchange BitMEX was sentenced to six months of house arrest after pleading guilty to violating the U.S. Bank Secrecy Act. read more
Our Standards: The Thomson Reuters Trust Principles.
China's Tencent Music Entertainment Group said its shares are due to start trading in Hong Kong next Wednesday after the company carries out a secondary listing by introduction.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

Write A Comment

Your article is loading
Exit mobile version