Terra Nosedives as its Founder, Do Kwon Faces Arrest

Do Kwon Terra lab’s founder is behind the $48 billion collapse of the Luna cryptocurrency.
The CEO of Terraform Labs Do Kwon has reportedly lawyered up in preparation for the possible legal action.

A South Korean court issued an arrest warrant for Do Kwon and five other individuals working at Terraform labs for violating South Korea’s Capital Markets Act. The fraud has been discovered after three months, on Wednesday.

The Seoul Southern District Prosecutor Joint Financial Crimes Investigation is in charge of the investigation of the Terra fiasco probe.

In January, the company launched a nonprofit organization called Luna Foundation Guard, investing over $4.1 billion. Nobody would believe that Kwon is a key player in the Terra fallback.

Kwon is charged with continuing to issue cryptocurrencies while failing to warn investors about the possibility that the values of the cryptocurrencies (Terra and Luna) that he has issued might experience a precipitous decline. The token has slumped by 16.7% over the past hour.

After the arrest warrant by the Korean police, individuals began to air their opinions about Kwon’s actions. Twitter user, Michael van De Poppe went on to say that Do Kwon deserves to be imprisoned and face the law just like any other criminal. He then compared Do Kwon to the infamous fraudster, Bernie Madoff.

“Honestly, he deserves jail,”

Van de Poppe wrote.

DaisiObanla another Twitter user backed up van De Poppie. He wishes that Do Kwon would be sentenced to 150 years without parole. Football player Nicolas Boulay also chimed in, writing that the Terra executive needs to feel the wrath of the community. Arent these words harsh? or is this what Do Kwon deserves? Druid Andrew later tweeted saying that Do Kwon did not break any criminal code.

Do Kwon destroyed more lives with $LUNA and $LUNC than Bitboy, The Moon Carl, MMcrypto, Ian Balina combined and multiplied by 100

Hopefully he serves a long sentence.

Karma always comes around. https://t.co/UeOWbIPEEc

— Mac 🐺 (@MacnBTC) September 14, 2022

Days after appearing in public following the demise of his company that has sent ripples across the cryptocurrency sector, the CEO of Terraform Labs Do Kwon has reportedly lawyered up in preparation for the possible legal action.

Meanwhile, the crypto sector is still trying to recover from the aftershocks of the Terra implosion, with the LUNA coin itself nosediving more than 40% in only two hours, from $4.1928 to $2.4964.

Terraform labs and its workers are also under investigation, there was a Bitcoin embezzlement. As a result, the respective funds were frozen by the investigation department. The investigation began after an informer in Terraform labs told about the embezzlement.

Moreover, CEO Kwon and others are also accused of breaking the law governing pseudo-receipts by “blocking” an investment. This is alleged to have occurred when they gathered investors and had them promise that they would provide them with an interest of approximately 20% if they bought Terra and entrusted it to them

Despite the ongoing dispute with the federal regulators, Kwon is expected to maintain his investment streak while continuing to expand Terra’s offerings.