February 2, 2023

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South Korea court issues arrest warrant for Terraform founder Do Kwon

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South Korea court issues arrest warrant for Terraform founder Do Kwon

Do Kwon, co-founder and chief executive officer of Terraform Labs, poses in the firm’s place of work in Seoul, South Korea, on Thursday, April 14, 2022.

Woohae Cho | Bloomberg | Getty Images

A South Korean court docket on Wednesday issued an arrest warrant for Terraform founder Do Kwon, Reuters noted, citing a spokesperson for the prosecutors.

It escalates a probe into the founder of blockchain platform Terraform Labs, the organization driving the algorithmic stablecoin UST, pursuing the Terra project’s spectacular collapse before this 12 months.

The implosion of the Terra system in May led to merged losses of somewhere around $60 billion concerning UST and its sister cryptocurrency luna.

UST, a controversial stablecoin that was intended to be pegged at 1:1 to the U.S. greenback, decoupled from its target value in mid-May perhaps and triggered a broader cryptocurrency sell-off that the electronic asset sector has however to recover from.

In June, Reuters reported that an unnamed official at South Korea’s Supreme Prosecutors’ Office said that several personnel of Terraform Labs could not leave the state and had been placed on a no-fly list.

A spokesperson at South Korea’s Supreme Prosecutors’ Office environment was not instantly obtainable to remark when contacted by CNBC on Wednesday morning.

Bitcoin was very last observed trading at $20,380 on Wednesday morning in London.

The world’s most significant cryptocurrency climbed back again previously mentioned the psychologically essential $20,000 mark previous 7 days right after falling under the $19,000 level before in the month for the very first time due to the fact June.

— CNBC’s Tanaya Macheel contributed to this report.

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