CRYPTO CRASH: South Korean court issues arrest warrant for Terra founder, Do Kwon

A South Korean court has issued an arrest warrant for the founder of Terra ecosystem, Do Kwon, after the $40 billion cryptocurrency crashed, resulting to a financial loss for its investors.

Kwon, alongside five others, are accused of violating the Capital Markets Act of South Korea by the financial crimes’ unit of the Supreme Prosecutors’ Office in the Asian country.

Prior to the arrest warrant reported by Bloomberg, Kwon’s $40 billion Terra ecosystem had crashed amid crypto winter, with some companies using the Terra platform or algorithm to facilitate their digital asset offering declaring bankruptcy.

Celsius Network, a crypto lender, as well as crypto broker, Voyager Digital, filed for bankruptcy after the Terra crash. Hedge fund, Three Arrows Capital, also owes creditors after borrowing billions of dollars to trade.

Read also: Bitcoin, Ethereum crash, as over 180,000 crypto investors liquidate due to Russia, US policies

Three Arrows Capital managed about $10 billion in cryptocurrency assets, investing in Terra Luna, Ethereum, Polkadot, Solana, amongst others, but cryptocurrency meltdown and Terra’s slump pushed the firm into bankruptcy.

The crypto winter or the bear market currently experienced in the cryptocurrency industry had led to a total loss of $1.18 trillion, with Bitcoin and Ethereum leading the loss.

Year-to-date, the crypto market value had depreciated by -54.33%, crashing from $2.18 trillion to $999.50 billion in a space of nine months, eroding interest from aspiring investors, discouraging minority crypto holders from increasing investment.

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