According to local news outlet gynews.kr, the Joint Financial Crimes Investigation Team of the Seoul Southern District Prosecutor’s Office announced that it will contact the country’s Foreign Ministry to cancel the Terra Luna co-founder’s passports. , Do Kwon, and five other project developers. . Prosecutors also plan to contact Interpol and turn the South Korean arrest warrant issued the day before into an international arrest warrant.
All Terra Luna members named in the warrant reside in Singapore, a country that does not have an extradition treaty with South Korea. Those targeted by the warrant include Mo Han and Mo Yu, who are both Terra Luna employees staying at Do Kwon in Singapore. Another person named is Greek national Nicholas Platias, a founding member of Terraform Labs.
Since the collapse of the Terra Classic (LUC) token – formerly known as Terra (LUNA) – and the algorithmic stablecoin Terra USD (USTC) in May, police have raided 15 places of interest, including stock exchanges. cryptocurrency and corporate offices related to the case. The indictment involves Terra employees, including Do Kwon, alleging violation of the country’s capital markets law, in which prosecutors consider Terra Luna ecosystem tokens to be “investment security contracts.” .
As South Korean prosecutors said, Do Kwon allegedly continued to issue LUNA and USTC without informing investors of the danger that the price of the two could fall together, which amounts to fraud. They pointed to statements made by Do Kwon, such as “If I deposit Terra in Terraform Labs, I will pay 19.4% interest”, as proof that Do Kwon knew beforehand that investments in the Terra ecosystem would not were not sustainable, yet continued to act in the same way to attract additional capital.
Later spin-offs from Terra Luna caused ripple effects in ecosystem projects. One such protocol, Apollo DAO, was forced to shut down its Terra Vaults on Wednesdays. The total project value locked exceeded over $200 million last year and has now fallen to levels near zero at press time.