South Korea Launches Manhunt For Founder Of Collapsed Stablecoin

Four months after the collapse of the $40 billion Terra ecosystem and its algorithmic stablecoin (UST), which was the first domino to fall in this year’s crypto winter, a South Korean court has issued an arrest warrant against Do Kwon, the co-founder of the now defunct stablecoin issuer Terraform Labs, according to the Financial Crimes Unit of the Supreme Prosecutors Office.

The warrant included five additional persons, Bloomberg News reported, citing a text message from the prosecutor’s office.

In July, South Korean prosecutors raided the home of Terraform Labs co-founder Daniel Shin as part of a probe into allegations of illegal activity behind Terra’s collapse.

As a reminder, this is not the first time for Kwon as we noted previously that he was also behind another failed algorithmic stablecoin called “Basis Cash”, which launched on ethereum in 2020. 

In his first public interview last month, Kwon had maintained that he is cooperating with authorities, and that despite the widespread investigation of the Terra collapse, Kwon denied allegations that the project was a “fraud.”

In an interview with crypto media startup Coinage that floated the prospect of jail time, Kwon said, “Life is long.”

But… a life-sentence is longer…