Prosecutors Issue Arrest Warrant for Terraform Labs' Kwon Do-hyung... Interpol Red Notice Issued

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the Luna and TerraUSD (UST) crash incident has begun efforts to secure the custody of Terraform Labs CEO Kwon Do-hyung, who is known to be staying overseas.

The Seoul Southern District Prosecutors' Office Joint Investigation Team on Financial and Securities Crimes (Head Dan Seong-han) and the Financial Investigation Division 2 (Chief Prosecutor Chae Hee-man) announced on the 14th that they recently obtained arrest warrants for six individuals, including CEO Kwon, founding member Nicholas Platias, and Hanmo, CEO of Chai Corporation, an affiliate of Terraform Labs.

The prosecution is reportedly expected to proceed with procedures such as issuing an Interpol red notice to secure their custody, as they are currently residing in Singapore.

The prosecution regarded Luna and Terra as "investment contract securities" under the Capital Markets Act and obtained warrants by applying charges of violating the Capital Markets Act against them. Until now, virtual assets had not been recognized as securities, so the Capital Markets Act was not applied.

Investors who suffered losses due to the crash of Luna and Terra filed a complaint with the Seoul Southern District Prosecutors' Office in May, accusing CEO Kwon of failing to properly disclose defects of the coins to investors and alleging that it constituted a multi-level financial fraud (Ponzi scheme), charging him with fraud and other offenses.

This content was produced with the assistance of AI translation services.