According to a local media report, South Korean law enforcement has issued an arrest warrant for LUNA founder and Terraform Labs CEO Kwon Do-Hyeong, also known as Do Kwon. The Founder has been under the radar of authorities since the Terra ecosystem collapsed in May 2022.
The arrest warrant was issued by the Financial Crimes and Securities Unit of the Seoul Southern District Prosecutor’s Office, which is under the leadership of Dan Seong-Han, according to the report. This institution investigated the founder of LUNA with its financial investigation division and five prosecutors.
As reported by Bitcoinist, an investigation against Do Kwon has been ongoing for several months. In July, South Korean authorities raided at least seven exchanges and a total of 15 companies investigating events related to the collapse of the Terra ecosystem.
Some of the biggest crypto exchanges in the country such as Bithumb, Upbit, Korbit and others were surveyed. Additionally, several Terraform Labs have been ordered to remain in South Korea.
The recent arrest warrant is the result of this investigation, as authorities may have found evidence of a violation of South Korea’s capital markets law. This settlement classified Terra (LUNA) as a security offered illegally without its registration.
As of this writing, the LUNA founder is still at large as he has changed his residence to Singapore. In this sense, the South Korean authorities planned to use international tools, via Interpol’s red alert and the invalidation of Kwon’s passport, to apprehend him.
LUNA founder denied contact with South Korean authorities
At its peak, the Terra (LUNA) ecosystem was valued at over $40 billion, with this cryptocurrency holding a position in the top 10 by market capitalization. After its collapse, there were reports of a series of crash-related suicides as some investors saw their net worth evaporate.
During the events, the LUNA founder said he was “heartbroken by the pain that my invention has brought to all of you”. There have been plans and proposals to bring LUNA back to its former glory, including a hard fork that separated the original cryptocurrency, known as LUNA Classic (LUNC), from a new iteration.
However, the arrest warrant could remove any attempt to succeed in this regard. In one of his recent interviews, Do Kwon denied being contacted by South Korean authorities and rejected any plans to return to that country.
Community Launches Jail Kwon Token
The arrest warrant is for one year and also calls for the capture of Nicholas Platias, another LUNA founder, and Han Mo, an employee of Terraform Labs. All of these suspects reside in Singapore with Do Kwon and may fall under Interpol’s radar.
Commenting on recent events, the pseudonymous account known as FatMan, a critic of Do Kwon who collaborated in filing a class action lawsuit against the LUNA founder for his alleged involvement in Terra’s collapse, said:
Do Kwon, the man who caused so much horror and suffering to thousands around the world for his own enrichment, is now officially a wanted fugitive. A great day for justice. And there are still a few shoes to drop off. May the best win.
Data from Coingecko shows that someone launched an Ethereum ERC-20 and called it Jail Kwon with the ticker JKWON when news of the arrest warrant broke. The token was recording 427% profit in the last 24 hours.
The original LUNA token was also on a rally but trended lower following the general market sentiment since yesterday September 13th.e.