South Korean court orders arrest of "fraudulent" cryptocurrency Luna developer: value plummets to almost zero

CTOnews.com Reuters reported on September 14 that a South Korean court has issued an arrest warrant for Do Kwon, the lead developer of the failed cryptocurrency Luna and founder of blockchain platform Terraform Labs.

"Arrest warrants have been issued for six people including Do Kwon, who currently resides in Singapore," a spokesman for South Korean prosecutors told Reuters. "

Kwon was accused of fraud by investors after the pegging of TerraUSD to the US dollar collapsed and the value of the Luna cryptocurrency fell to almost zero in May.

Reuters could not immediately reach Kwon for comment.

CTOnews.com learned that in June, market participants said that Luna 2.0 was never about survival, it was just a mechanism for some people who had invested heavily to make up for some of their previous losses through new bets. There is no reason to see its price rise. Terra 2.0 has multiple problems. It comes online in an unfavorable macro and cryptocurrency environment. Without algorithmic stability, it is not significantly different from other smart contract platforms. Finally, the issue of regulation is a key one on investors 'minds.