The South Korean Ministry of Justice has reportedly approved prosecutors’ request that notorious Terraform Labs co-founder Do Kwon be ordered to notify authorities when he returns to his country. He is believed to currently be residing in Singapore.
The prosecution wants to hold Kwon accountable
The collapse of Terra’s native token, LUNA, and its algorithmic stablecoin, UST, was one of the most discussed topics in the cryptocurrency community two months ago. The latter lost its parity and fell well below the $1 target. As a result of the accumulated panic, investors began to sell off their UST reserves en masse.
Since the native token was closely related to the stablecoin, the Terra team started minting more LUNA to stabilize the lock. However, the process increased the supply of LUNA and therefore its price also plummeted.
To consider the significance of the issue, it is worth noting that the asset was among the top 10 cryptocurrencies by market capitalization before the crash, while it was worth virtually zero just a few days later. Numerous investors suffered considerable losses, while some logically began to look for the culprit of the event, blaming Terra CEO and co-founder Do Kwon.
According to recent coverage, the Ministry of Justice will require the 31-year-old South Korean, who currently resides in Singapore, to notify the relevant authorities when he returns to his homeland.
You will also have to face all the charges against you, such as accusations of committing fraud and engaging in illegal fundraising. Additionally, prosecutors have been investigating whether Kwon evaded taxes by transferring crypto assets to an offshore account.
It is worth mentioning that the South Korean authorities banned many of Terra’s top executives from leaving the country, including Daniel Shin, another co-founder of the project.
Anonymous also targeted Kwon
A month ago, the popular hacker collective Anonymous claimed that Do Kwon was to blame for the collapse of Terra and numerous investment losses. As such, the group promised to expose the executive’s darkest secrets and hold him accountable for the adverse outcome:
“Anonymous is looking into the entire history of Do Kwon since he entered the crypto space to see what we can learn and bring to light. There is no doubt that there are many more crimes to be discovered in his trail of destruction.
The other scams Anonymous mentioned could refer to Do Kwon’s relationship with another failed stablecoin from the recent past called “Basis Cash”. The South Korean was one of the co-founders of the project, which, like UST, fell to zero.
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This post South Korean authorities issued a notice upon arrival in Do Kwon (Report)
was published first on https://cryptopotato.com/south-korean-authorities-issued-a-notice-upon-arrival-to-do-kwon-report/
