Just a day after reports emerged that South Korean authorities had begun another investigation into Terraform Labs. According to several newspapers, a local court has issued an arrest warrant against Do Kwon and five others.
The prices of the two crypto assets under Terra, namely LUNA and LUNC, have been greatly affected by this event, prompting a price drop of more than 20% within 24 hours.
Based on a report from Bloomberg, there are arrest warrants issued against Do Kwon and five other individuals for violating capital market regulations.
Another local report claimed that Interpol would intervene as Kwon now resides in Singapore. The newspaper also named two of the five other Terra-related individuals, Nicholas Platias (a founding member of TFL) and Han Mo, an employee.
This latest development comes just a day after South Korean prosecutors launched another investigation into Terraform Labs to determine whether its original tokens are securities or not.
As previously reported, LUNA and UST were once among the ten largest cryptocurrencies in terms of market cap. The cryptocurrency crash wiped out about $50-60 billion in market capitalization and also brought down several companies, such as 3AC, Voyager, Celsius, and others.
Interestingly, LUNC and LUNA have performed quite well in the past few weeks gaining over 200% in a few days. However, both have fallen in the past 24 hours, possibly driven by the market's complete collapse as well as the news of Kwon's arrest warrant.
