A South Korean court has issued arrest warrants against TerraForm Labs founder Do Kwon and five others for violating the Capital Market Act. The prosecutors will work with Interpol to issue a Red Notice and extradite Do Kwon from Singapore. The move comes after the latest investigation by the prosecutors’ office to determine if Terra tokens are securities.
South Korean Prosecutors Seek Interpol Help to Extradite Do Kwon
The Seoul Southern District Prosecutors Office’s Financial and Securities Crime Joint Investigation Team on September 14 obtained arrest warrants against Terra founder Do Kwon and five others from a court. The prosecutors investigating the collapse of Terra tokens LUNA (now LUNC) and UST (now USTC) had also collected evidence for fraud and market manipulation.
Moreover, the prosecutors started a new investigation into Terra and Do Kwon to determine if the accused also violated the Capital Market Act. On Monday, Prosecutors met with experts from crypto exchanges and financial regulators including Financial Supervisory Service to determine if Terra tokens are securities.
According to South Korean media, the prosecutors’ investigative team has charged the defendants with violating the Capital Market Act. The prosecutors will work with Interpol to request a Red Notice against Do Kwon to extradite him from Singapore. In addition, the prosecutors will look for passport invalidation.
The arrest warrants a valid for a year. Therefore, the prosecutors’ investigation team is more likely to use all measures to arrest Do Kwon and take legal action.
LUNA and LUNC Prices Fall After Do Kwon Arrest Warrant
Terra (LUNA) tumbled over 40% after the prosecutors issued arrest warrants against Terra founder Do Kwon. The LUNA price is currently trading at $2.89. It has a 24-hour low and high of $2.29 and $4.63, respectively.
Terra Classic (LUNC) also dived 20% after the LUNA price tumbled 40%. In the last 24 hours, LUNC has made a low and high of $0.00027 and $0.00038. However, the price has increased slightly after the Terra Classic community reiterates support for LUNC.
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