The Terra and Luna crashes remain two of the biggest crashes in Cryptocurrency history. In its little over a decade of history, the market as a whole saw $60 billion wash away and crippled the industry, the effects of which many companies and investors have yet to recover from.
However, even if many investors have lost hope and are no longer holding out hope to retrieve their funds, the South Korean authorities are still very much out to get the top exec responsible for Terraform Labs.
Not only are the relevant authorities looking to arrest Do Kwon, top exec at Terraform Labs, but they are also looking for other individuals who might be involved with the incident. The police have already arrested one of the people who had ties to Kwon and his company’s operations.
The Foreign Ministry of South Korea has also ordered that Kwon return their passport by the designated date, or it will be canceled.
The Saga of South Korean Authorities vs. Do Kwon
Kwon’s company made history by having two assets that both contributed to possibly the biggest crypto collapse in the market, with billions of dollars wiped away in an instant. His company, Terraform Labs, was operating out of South Korea, and since then is on “Red Notice.”
South Korean authorities will often reserve the Red Notice for individuals who are on the run and are avoiding prosecution or their sentence. Considering the loss that he was responsible; it only makes sense that they would be on high alert for him.
However, despite saying that he is not on the run from the authorities, his whereabouts still remain unknown. The Seoul Southern District prosecutors’ office has found Kwon and his associates of violating various capital markets laws and committing fraud.
The Effects of the Terra and Luna Crashes
The crypto market as a whole is infamous for its volatility, but some even see it as a major benefit. Since the market is very volatile, it is more than likely that companies will also skyrocket in popularity, which could even lead to people making a lot more money.
However, following the crash, people started to have second thoughts about the DeFi space, which would even lead to investors cashing out of other cryptocurrencies and leaving.
Freezing His Assets
In an effort to bring out Do Kwon, the authorities have freeze various assets and are even looking to freeze his passport. They sent out an official request to two other cryptocurrency exchanges, OKX and KuCoin. The request was to freeze more than $60 million that he had in Bitcoin. They will also be looking into withholding nearly $40 million worth of digital assets that belong to him.