LUNA sinks 20% after South Korea issues arrest warrant for Do Kwon

Terra’s LUNA declined 20% on the news that South Korea has issued an arrest warrant for its founder Do Kwon.

The token, which has enjoyed a new wave of interest that pushed its price up by over 80% in the last seven days, has seen its value drop by 21.4% in the previous 24 hours to $3.35, according to CryptoSlate data.

South Korea issues Kwon’s arrest warrant

Bloomberg News reported that a court in Seoul had issued a warrant for Kwon’s arrest and that of five others.

The report said South Korea’s prosecutor’s office confirmed the arrest warrant.

Local media Yonhap News said the arrest warrants were also issued for the founding members of Terraform Labs, Nicholas Platias, and the CEO of the affiliated Tchai Corporation, Han Mo.

The arrest warrant is valid for one year. The prosecutors are willing to try tactics like invalidating Kwon’s passport and collaborating with Interpol to bring him in.

Do Kwon presently lives in Singapore.

Since Terra’s implosion in May, several crypto community stakeholders have questioned why the authorities were yet to arrest Do Kwon for his role in the crash.

On Sept. 13, Yonhap reported that South Korean prosecutors investigated whether the crashed Terra tokens had security features.

Kwon has repeatedly maintained his innocence though he admitted that he might have made some mistakes. He also claimed that the prosecutors had yet to reach out to him.

In August, Kwon submitted an attorney appointment letter to prosecutors in South Korea in preparation for his defense.

Crypto community welcomes news

The crypto community has welcomed news of the arrest warrant, expressing much happiness about the development.

Conor Brandson said:

“I don’t think it’s a surprise that he’s being officially accused of a crime. It’s a surprise an arrest warrant didn’t happen sooner.”

FatMan Terra described the news as a “great day for Justice.”

Source: https://cryptoslate.com/luna-sinks-20-after-south-korea-issues-arrest-warrant-for-do-kwon/