South Korean court orders arrest of fraudulent cryptocurrency Luna developer

A South Korean court has issued an arrest warrant for Do Kwon, the main developer of the failed cryptocurrency Luna and the founder of blockchain platform Terraform Labs.

A spokesman for South Korean prosecutors said, arrest warrants have been issued for six people, including Do Kwon, who is currently living in Singapore.

Kwon was accused of fraud by investors after the value of the Luna cryptocurrency fell to almost zero in May after the peg of the paired stablecoin TerraUSD to the U.S. dollar collapsed.

Reuters could not immediately reach Kwon for comment.

In June this year, market participants said that Luna 2.0 was never meant to survive, it was just a mechanism for some people who had invested heavily in the past to make up for some of their previous losses through new bets. I don't see any reason for its price to go up. Terra 2.0 has many problems. It went live in an unfavorable macro and digital cryptocurrency environment. Without algorithmic stability, it is indistinguishable from other smart contract platforms. Finally, regulatory issues are a key issue on investors' minds.

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