Home Crypto Luna & Luna Classic race crash after Do Kwon . arrest warrant

Luna & Luna Classic race crash after Do Kwon . arrest warrant

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New Terra LUNA price drops by more than 70% after Airdrop

As Newsbit reported earlier today, the court in South Korea’s capital, Seoul, has issued a warrant for the arrest of Do Kown, the founder of TerraForm Labs. This has caused both the Luna Classic and the Luna price to fall by 21 percent and 36 percent respectively.

The collapse of Terra

According to a report by Bloomberg, police in Seoul want to arrest Do Kwon as well as five other people. This is because they are wanted for violating the so-called ‘Capital Market Act’.

The arrest warrant comes about five months after the Terra ecosystem collapsed, leaving some $40 billion in capital going up in smoke. The project’s stablecoin lost its peg to the dollar, causing both the UST stablecoin and its Luna token to lose almost all of their value.

This collapse was a dramatic event for both investors and a large number of companies in the crypto world. Leading DeFi lenders such as Celsius and Three Arrow Capital faced a liquidity crisis that forced them to file for bankruptcy.

A large-scale investigation

This is not the first time that Do Kwon has been on the radar of the Korean authorities. After Terra’s crash, the country’s Joint Financial and Securities Crime Investigation Team launched an investigation into “fraud” surrounding the UST and LUNA crash. According to reports, police have conducted searches of more than 15 properties and numerous Terra managers.

Do Kwon does not currently live in South Korea and said in an interview that he has no plans to return to the country. However, he said he was cooperating with the police investigation.

Do Kwon and the five other individuals currently wanted by police are reportedly in Singapore. If Do Kwon and the employees do not cooperate and return to South Korea, the court can request an extradition.

Luna and Luna Classic course crash

The Luna Classic and the Luna price rose sharply in the past week, but less and less of those huge gains remain. The news that Do Kwon and five employees are wanted does not reflect well on the projects. Certainly not on Luna, of which Do Kwon is still the leader.

The Luna Classic price has fallen by about 22 percent in the past 24 hours. The Luna price has even lost more than 35 percent of its value in one day.

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