Terraform Labs co-founder Do Kwon is now a wanted man as a South Korean court has issued an order for his arrest.
Kwon is wanted in connection with the $40bn implosion of the Terra and Luna tokens which wiped off billions-worth of value from the crypto market.
The court also issued arrest warrants for five other Terraform Labs employees, a spokesperson for the Seoul Southern District Prosecutors’ Office confirmed for the Financial Times. However, the arrest warrant missed Daniel Shin, a co-founder in Terraform Labs.
Prosecutors now insist that Kwon has participated in financial fraud conducted through the TerraUSD token and are trying to track him down.
According to the prosecutors, Kwon is based in Singapore right now, although the office did not say whether they have located him.
However, the office is in the process of identifying ways to extradite the businessman and bring him to justice back in South Korea.
In a recent interview the 31-year-old denied being in touch with South Korean authorities at all.
He argued that what happened to Terraform Labs was not fraud, but a project that had gone sideways, and he refused to accept that the project was run dishonestly.
Meanwhile, Kwon may be placed on Interpol’s red notice list which would restrict him from traveling and keep him in Singapore, if he is indeed there.
Kwon is facing allegations of purposefully deceiving at least 81 investors in the case involving the crash of the stablecoin which lost its value despite being pegged to US dollar, an unprecedented development in the market which has undermined trust in stablecoins and the sector.