Four months after the collapse of TerraUSD, South Korean police are still looking for Do Kwon and other top people behind Terraform Labs over allegations of fraud and tax evasion.
A warrant has been issued for the CEO of Terraform Labs and five other heads of the company, according to a report. According to the Korean Times, Nicholas Platias had a warrant for his arrest.
When the UST stable coin became depegged from the U.S. dollar in May, the Terra/Luna coin market crashed. There was a combined market cap of over $60 billion for Terra and Luna. The Luna Foundation was unable to prop up its crumbling infrastructure despite an influx of reservecryptocurrencies.
The TerraUSD collapse was being investigated by Korean financial law enforcement. Many high-level members of the company were already located elsewhere, even though police instituted a flight ban on employees from leaving South Korea.
According to prosecutors, Terraform Labs is located in Singapore and all six of the wanted individuals are there. The TerraUSD stable coin went bust before Terra execs dissolved their South Korean offices. The company had previously stated that they were moving their offices to Singapore.
How easy will it be for South Korean officials to get in touch with Kwon and his friends? The Monetary Authority of Singapore once tried to promote the country as a global hub for digital currency. The market downturn and growing international pressure on stable coins led to MAS officers promising to crack down on firms that sell them.
The company's next moves were not commented on by a spokesman for Terraform Labs.
The entire idea of a stable coin was completelynixed by Terraform Labs' Luna 2.0 project. The price of Terraform Lab's new coin, which is currently hovering under $3, hasn't budged despite the news of the warrants.
The residence of Terra co- founder Daniel Shin was raided by Korean prosecutors in July. In an interview with Coinage, which had been criticized for being easy on Kwon, he said Shin had left the company. He said that prosecutors hadn't charged them with a crime. "If you know something isn't true, and then you argue that it's true for personal enrichment or something, then that's fraud... everything that excited us about the Terra stable coins."
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