Do Kwon, the founder of Terraform, received an arrest warrant on Wednesday from a South Korean court, according to Reuters, which also cited a prosecutor’s spokesperson.
Following the stunning failure of the Terra project earlier this year, an investigation into the founder of blockchain platform Terraform Labs, the organisation behind the algorithmic stablecoin UST, is intensified.
UST and its sister cryptocurrency luna suffered combined losses of almost $60 billion as a result of the collapse of the Terra platform in May.
A wider cryptocurrency sell-off that the market for digital assets has yet to recover from was started by the contentious stablecoin UST, which was intended to be tied at 1:1 to the U.S. dollar. UST decoupled from its target price in mid-May.
According to a June Reuters article, some Terraform Labs employees were prohibited from leaving the country and had been added to a no-fly list, according to an unnamed official at South Korea’s Supreme Prosecutors’ Office.
When contacted by CNBC on Wednesday morning, a spokeswoman for the Supreme Prosecutors’ Office of South Korea was not immediately available for comment.
In the early hours of Wednesday in London, Bitcoin was last spotted trading at $20,380.
The biggest cryptocurrency in the world returned to the psychologically significant $20,000 level last week after briefly dropping below $19,000 earlier in the month for the first time since June.