While the LUNC community rejoices over the potential return of the Terra Luna Classic (LUNC) token, TerraForm Labs founder Do Kwon is now facing an arrest warrant from the South Korean authorities.

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A court located in Seoul reportedly issued Arrest warrants for Kwon and five others, all currently based in Singapore. According to the prosecutor’s office in South Korea, Terra’s founder is facing charges of violating the country’s capital markets law.

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In May, the Terra community first suspected a FUD attack, becoming one of the most devastating market crashes in crypto history, causing the loss of millions of assets from investors of TeraUSD (UST) – now renamed TerraUSD Classic (USTC). Given – and Terra (LUNA), which has also been rebranded to Luna Classic (LUNC). The UST stablecoin began pulling away from its US dollar peg, falling to an all-time low of $0.006 in June.

In addition to UST, LUNA, an asset that once peaked at $119.18 in April, fell to an all-time low of $0.0000009, triggering a suicide hotline pinned on the project’s reddit community.

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The Terra crash also affected various decentralized finance (DeFi) protocols, causing a drop of 80% or more for stablecoin-linked projects.

Exchanges criticized for ‘Nothingburger PR’ posts on upcoming LUNC tax burn

On August 17, Kwon hired lawyers for a law firm based in South Korea, just days after saying that authorities had not contacted him yet. According to a report, the founder of Terra gave the appointment letter to the department responsible for investigating the Terra collapse.

Terra’s founder also broke his silence on August 16 in an effort to remove his name from the various allegations. However, despite Kwon’s efforts, members of the community still criticized the Terra CEO, comparing his position to that of the creator of Tornado Cache, who was arrested for writing privacy code.