Arrest warrant issued for man blamed for the crypto winter

midian182

Posts: 8,328   +103
Staff member
What just happened? Do Kwon, founder and CEO of Terraform Labs, the company many blame for starting the crypto winter, has had an arrest warrant issued against him in South Korea and may be forced to return to the country.

Back in May, TerraUSD (UST), an algorithmic stablecoin that was then the 11th largest cryptocurrency by market cap, crashed from its US dollar peg and fell close to zero, bringing support coin Luna with it. Around $60 billion combined was wiped off the value of both tokens. The fall impacted the entire crypto industry, which saw its overall market cap fall below $1 trillion, layoffs and bankruptcies at major companies, and miners abandoning the business.

According to Bloomberg, Kwon and five others, all listed on the warrant as living in the city-state of Singapore, are the subjects of an arrest warrant issued by a South Korean court over charges relating to violating the Capital Markets Act.

Authorities are now trying to force Kwon back to South Korea by seeking to have his passport revoked. If the Foreign Ministry does grant the request, Kwon would theoretically have to return to his home country within 14 days, though the ministry said it's possible Kwon can stay in Singapore without a passport.

In July, prosecutors raided the home of Terraform Labs co-founder Daniel Shin as part of an investigation into illegal activities behind TerraUSD's collapse. The Reg notes that current and former Terraform employers have been banned from international travel.

Some Luna investors have filed complaints against Kwon, alleging he engaged in fraud and illegal fundraising. Kwon previously said he plans to co-operate with authorities. "Obviously, like in hindsight, a lot of the beliefs and sort of the conjectures that I had made were wrong," he said about the collapse.

Kwon created a new version of Luna after the previous one crashed. Its price fell 45% to $2.40 following news of the warrant. It seems he is philosophical about the prospect of going to jail. When asked about such a possibility by Coinage, Kwon said, "Life is long."

Permalink to story.

 

Nanochip

Posts: 110   +153
Life isn’t always long so do the best you can to enjoy it and make the most of it while you still have it. And try not to make spectacularly bad investments in things like Luna.
 

Endymio

Posts: 1,838   +1,909
Wouldn't it be nice if the CEO/board of a company were held responsible if stocks tanked suddenly
By and large, they are, of course. But the better answer is why should you care? If a CEO receives an "out of control salary", it's because the owners of that company gave him one. If it's a large public corporation, then the shareholders voted for the board members who made that decision. Their decision, not yours.
 

fps4ever

Posts: 1,102   +1,794
By and large, they are, of course. But the better answer is why should you care? If a CEO receives an "out of control salary", it's because the owners of that company gave him one. If it's a large public corporation, then the shareholders voted for the board members who made that decision. Their decision, not yours.

To clarify I'm all for making more money whatever the position until it you see massive layoffs, salary reductions, factory closings, bad/lying marketing, insider trading, manipulation of stocks, worker harassment, etc., etc.. that only effects the common workers. Better question is WHY don't you care? You don't see a problem with that? I'm all for capitalism but something is broke.
 

terzaerian

Posts: 1,517   +2,259
Shoot...the only difference between crypto and (I live in the USA) U.S. money is
the U.S. money is backed "by the good faith & credit of the U.S. government".
LOL...worth about as much as crypto!
The difference is nobody is compelled to transact crypto at gunpoint. Not so much with the federal government, where compliance is extracted by force.
 

psycros

Posts: 4,462   +6,653
The difference is nobody is compelled to transact crypto at gunpoint. Not so much with the federal government, where compliance is extracted by force.

There are at least two cases of people being forced to provide access to their crypto wallets at gunpoint last I heard.