Do Kwon, co-founder and chief executive officer of Terraform Labs, poses in the company’s business office in Seoul, South Korea, on Thursday, April 14, 2022.
Woohae Cho | Bloomberg | Getty Illustrations or photos
A South Korean courtroom 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 corporation behind the algorithmic stablecoin UST, pursuing the Terra project’s amazing collapse previously this calendar year.
The implosion of the Terra system in May well led to put together losses of somewhere around $60 billion among UST and its sister cryptocurrency luna.
UST, a controversial stablecoin that was meant to be pegged at 1:1 to the U.S. greenback, decoupled from its concentrate on price tag in mid-Might and brought on a broader cryptocurrency sell-off that the digital asset sector has still to recover from.
In June, Reuters reported that an unnamed official at South Korea’s Supreme Prosecutors’ Office claimed that a number of workers of Terraform Labs could not depart the place and experienced been placed on a no-fly list.
A spokesperson at South Korea’s Supreme Prosecutors’ Office environment was not quickly readily available to remark when contacted by CNBC on Wednesday early morning.
Bitcoin was very last witnessed investing at $20,380 on Wednesday morning in London.
The world’s premier cryptocurrency climbed again over the psychologically vital $20,000 mark previous 7 days soon after falling down below the $19,000 amount earlier in the thirty day period for the 1st time due to the fact June.
— CNBC’s Tanaya Macheel contributed to this report.
