Arrested Development

Market Meditations | September 14, 2022

Followers of Terra price action may have noticed a pump in recent weeks. Both the community-run $LUNC and the revamped $LUNA have seen price multiples of three to five. While some investors rejoiced, that joy was cut short this week on the news of an arrest warrant:

  • Yesterday, a South Korean court issued an arrest warrant for Terra co-founder Do Kwon and five others.
  • The warrant will be valid for one year. Kwon is currently living in Singapore and last month he hired a lawyer in preparation for his defense.
  • Local news outlet Chosun reported that the prosecution will try various tactics, such as invalidating Kwon’s passport and collaborating with Interpol.
  • If Kwon were to be the subject of an Interpol Red Notice, it would represent “a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action”.
  • The targets of the other arrest warrants are not fully known. Local media Yonhap News said they included Terraform Labs co-founder, Nicholas Platias, and the CEO of the affiliated Tchai Corporation, Han Mo.
  • Having risen 80% in the last week, $LUNA dropped 20% on the news, according to Peckshield.

The prosecution have not yet released a statement and details are scant. But officials haveconfirmed that the individuals are wanted on charges of violating the Capital Market Act“.