Luna developer: Do Kwon arrest warrant issued by South Korea

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A South Korean court has issued an arrest warrant for Do Kwon, the lead developer of the Luna and TerraUSD cryptocurrencies, whose dramatic crash in May rocked crypto markets around the world.

Kwon, also the founder of blockchain platform Terraform Labs, was accused of fraud by investors following the collapse.

“An arrest warrant has been issued against a total of six people, including Do Kwon, who currently resides in Singapore,” a spokesperson for the prosecution said on Wednesday without giving further details.

Kwon did not immediately respond to an email from Reuters seeking comment.

The arrest order comes after months of investigation, including search and seizure operations at related offices and local cryptocurrency exchanges.

TerraUSD, a so-called stablecoin that was once among the world’s top 10 cryptocurrencies by market value, broke its 1:1 peg to the US dollar in May, plunging in value and sending the paired token Luna plummeting with it.

According to blockchain analytics firm Elliptic, investors in the two coins lost around $42 billion.

The ensuing market turmoil led to the bankruptcy of several major crypto firms, including US crypto lender Celsius and Singapore-based crypto fund manager Three Arrows Capital.

In an August video interview with crypto media platform Coinage, Kwon said he moved to Singapore due to concerns about his family’s safety and dismissed suggestions that the move was due to the accident or an attempt to evade investigators.

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