The South Korean Ministry of Justice reportedly approved the prosecutors’ request that the notorious Co-Founder of Terraform Labs – Do Kwon – be ordered to notify authorities when he returns to his country. He is believed to be currently residing in Singapore.
The collapse of Terra’s native token – LUNA – and its algorithmic stablecoin – UST – was one of the most discussed topics in the cryptocurrency community two months ago. The latter lost its peg and dropped way below the target of $1. As a result of the accumulated panic, investors started selling their UST reserves en masse.
Since the native token was closely connected to the stablecoin, Terra’s team started minting more LUNA to stabilize the crash. The process, though, increased LUNA’s supply, and thus its price tumbled, too.
To consider the significance of the problem, it is worth noting that the asset was among the top 10 biggest cryptocurrencies by market capitalization before the collapse, while it was worth virtually zero just a few days later. Numerous investors suffered considerable losses, while some logically started looking for the culprit of the event, blaming the CEO and Co-Founder of Terra – Do Kwon.
According to a recent coverage, the 31-year-old South Korean, said to be currently residing in Singapore, will be required by the Ministry of Justice to notify the relevant authorities when he returns to his homeland.
He will also have to face all the charges against him, such as accusations of committing fraud and engaging in illegal fundraising. In addition, prosecutors have been looking at whether Kwon evaded taxes by transferring crypto assets to an offshore account.
It is worth mentioning that the South Korean authorities banned many of Terra’s top executives from leaving the country, including Daniel Shin – another Co-Founder of the project.
A month ago, the popular hacking collective – Anonymous – claimed that Do Kwon was the one to be blamed for Terra’s crash and the numerous investment losses. As such, the group vowed to expose the exec’s darkest secrets and hold him responsible for the adverse outcome:
“Anonymous is looking into Do Kwon’s entire history since he entered the crypto space to see what we can learn and bring to light. There is no doubt that there are many more crimes to be discovered in your trail of destruction.”
The other scams which Anonymous mentioned might refer to Do Kwon’s relation to another failing stablecoin from the recent past called “Basis Cash.” The South Korean was one of the Co-Founders of the project, which, similar to UST, tumbled to zero.
