your current location is：Home > investHomeinvest

In May of this year, the bloody scene of the collapse of the third-largest stablecoin UST in the currency circle and its sister token Luna coin still impressed many people. The founders could face the fate of going to jail.

　　A South Korean court has issued an arrest warrant for Do Kwon, co-founder of blockchain platform Terraform Labs, according to a release from the South Korean prosecutor’s office. Under the influence of this news, the decline of Luna coin once expanded to 40%.

　　Luna coin plunged 40% in a short period of time

　　In just four months: from "coin circle boss" to imprisoned

　　Before May of this year, the blockchain platform Terraform Labs was a huge cryptocurrency empire, and its algorithmic stablecoin UST was once the third-largest stablecoin in the cryptocurrency market.

　　As the co-founder of Terraform Labs, Do Kwon has always been a well-known figure in the currency circle, even known as "Korea Musk".

　　However, in May of this year, the UST unexpectedly exploded and decoupled from the US dollar, causing market panic. In addition, the value of the Terra public chain ecological token Luna, which is hedged with UST, evaporated instantly, and the price was infinitely close to 0. In the slump in the past few days, the value of the two virtual currencies, which once combined $60 billion, has almost completely evaporated.

　　This incident triggered panic in the global currency circle and exacerbated the sharp fall of Bitcoin, which was once considered to be a "Lehman moment" that could trigger the collapse of the currency circle.

　　After the explosion of UST and Luna, the Korean Financial Services Commission and the Financial Supervisory Authority began to conduct emergency inspections on the incident and the entire currency circle, and accelerated the formulation of relevant laws such as the Basic Law of Digital Assets.

　　South Korean prosecutors have reportedly searched 15 cryptocurrency companies. Raids and seizures are also being conducted on the offices of Terra executives and affiliated companies.

　　In July, South Korean prosecutors raided the home of Terraform Labs co-founder Daniel Shin and launched an in-depth investigation into allegations of illegal activity behind Terraform's collapse.

　　Now, the South Korean Prosecutor's Office has finally officially decided to arrest Do Kwon, and the former "coin circle boss" may also face the ending of being imprisoned.

　　From "Korea Musk" to "Korea Jia Yueting"?

　　It was revealed that a Seoul court in South Korea had issued arrest warrants for Do Kwon and five others, accusing them of violating laws such as the South Korean Capital Markets Act. However, all six people on the warrant are currently in Singapore, according to the South Korean prosecutor's office.

　　It is unclear whether the South Korean warrant will involve cross-border arrests. It follows reports in July that South Korean prosecutors had discussed the possibility of Do Kwon's extradition with Interpol.

　　In response to the arrest warrant from South Korean prosecutors, Do Kwon was clearly prepared.

　　According to foreign media reports, as the South Korean government prepares to launch an investigation, Do Kwon has hired a lawyer to prepare for legal disputes in advance.

　　In addition, Do Kwon has been staying in Singapore since the UST explosion and did not return to Korea. However, Do Kwon went to Singapore before the UST explosion, and he himself emphasized in an interview that he did not "flee" to go to Singapore, but a decision made before the collapse.

　　Kwon said in a previous interview that returning to China was a difficult decision, and he would cooperate with South Korea when the time came. When talking about the possibility of going to jail in an interview, Do Kwon just said: "Life is Long."

　　Do Kwon also insisted in an interview that he rejected the claim that the UST stablecoin was a scam, insisting that it was working as intended. He also stated that he is determined to remain in the crypto industry for decades to come, despite the potential jail time.