The South Korean authorities have arrested, according to the local press, the head of general land affairs.
The arrests in the Terra house continue
The hands of justice are shaking around Earth, after the resounding failure of its ecosystem, which occurred last May, which led to a real collapse of the cryptocurrency markets and the concern that the failure of the native Luna UST stablecoin could spread to the entire stablecoin market, which has grown exponentially and acts as a sort of collateral to the entire cryptocurrency market.
The arrest of the Terra manager comes after months of investigations by the South Korean authorities which have led to several charges against the former CEO and founder of the company and some of its important managers, for tax evasion and money laundering.
The arrest involved the head of general affairs of Earth, Yoo Mo , a very close associate of CEO Do Kwon , who designed and implemented the Earth protocol. This marks the first arrest in the ongoing Earth investigation. Last Wednesday, the South Korean authorities issued a judicial warrant against the individual, who was immediately taken off his passport and locked up in jail awaiting trial.
Yoo is accused of market manipulation, evasion and fraud, but most likely the arrest is also a warning to the real target of Korean justice, which would be the founder Kwon, who a few months ago sold his properties in Korea, most likely to escape the possibility of confiscation of assets, which the authorities may require very soon.
According to reports from the South Korean press that first broke the news, the South Korean authorities have issued an arrest order for most of the company's top management, clearly including Kwon, co-founder and CEO of Terraform Labs. Yoo's arrest warrant is dated September 14. Additionally, prosecutors say Yoo used bot programming to artificially inflate and manipulate the market price of Terra's cryptocurrency.
Interpol is also following in the footsteps of Do Kwon
In recent days, the Korean authorities have issued an order to withdraw Kwon's passport, giving him 14 days for his delivery , under penalty of cancellation of the same and have asked Interpol to issue an international arrest warrant, after the investigation into the collapse of Terra's algorithmic stablecoin and sister cryptocurrency in May of this year, would have shown serious irregularities committed by Kwon.
For preventive purposes, South Korean prosecutors have frozen nearly $ 40 million in cryptocurrencies allegedly belonging to Terraform Labs co-founder Kwon Do-hyeong.
At the news, the founder Kwon would have replied via Twitter, to deny that the frozen funds were his:
“I don't understand the motivation behind the spread of this falsehood: flexing the muscles? But for what purpose? "
Know after the collapse of its ecosystem has certainly not been idle, but has created a new token and project renamed Luna Classic, which after an initial collapse has recovered, and which after the news has lost more than 4%. The price of the coin fell by 43%. Kwon has always reiterated that he wants to collaborate with the authorities, claiming that he has not committed any of the charges charged by the Korean court. He also said he is not a fugitive at all, although his current residence remains mysterious since he allegedly sold his very luxurious apartment in Singapore before the summer for over 25 million dollars.
EmoticonEmoticon