Arrest Warrant for Do Kwon
Arrest warrants have been issued for Terra Founder Do Kwon and five others, Bloomberg reported. According to the news previously published in a local newspaper, the search warrant was issued due to the violation of capital market rules. An arrest warrant was issued by the court in Seoul for Do Kwon, who has recently been named in both South Korean and US lawsuits. In July of this year, South Korea asked Do Kwon to respond to the accusations. Do Kwon later said in an interview that South Korean investigators had not reached him.
Well, let’s examine together what happened before and what happened after the collapse of Terra.
What Happened on Terra?
The decline that started in the price of Luna coin and UST in the Terra ecosystem became quite harsh, and the price of a stablecoin, UST, was reset, in the same way, Luna dropped from $ 80 to 0. So why did all this happen?
The UST price, which was fixed at 1 dollar, was reset to zero when approximately 5 billion UST in Anchor Protocol, one of the Defi projects in the Terra ecosystem, started to be sent and sold to different exchanges. The UST price was backed by BTCs owned by the Luna Foundation. Ecosystem founder Do Kwon previously said that the foundation has the most BTC holding wallet after Satoshi, emphasizing the company’s potential to stand strong in the face of difficult situations. But with the developments, Do Kwon’s statements were proven to be false. In order to maintain the UST price and reach 1 dollar, the foundation sold all of its BTCs, but still could not reach 1 dollar.
Do Kwon’s Remarks
Three months after these events, Terra founder Do Kwon appeared in front of the cameras and made statements. In an interview with NFTV, Kwon said that he had received threats and went to Singapore to protect his family: “I did not flee to Singapore because of lawsuits or investigations, no one reached me.” Commenting on the system’s downfall, Do Kwon later said: “I never thought Terra would crash. If there is a loophole in the system for short selling and someone is profiting from it, it’s just my fault.” He used his expressions.
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