Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
South Korean authorities issue an arrest warrant for Terra co-founder Do Kwon, as well as five other people linked to him.
- South Korean authorities seek Do Kwon’s arrest.
- The order includes five other people from Terraform Labs.
- They are accused of violating the Capital capital is most commonly defined as the large sum of money you would use to invest. Markets Act.
- LUNA and LUNC came down after the news.
A South Korean court has issued a warrant for the arrest of Do Kwon, the co-founder of Terraform Labs sender of the unfortunate stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. algorithmic TerraUSD (UST). The local news agency, Chosun Ilbo was the first to report, according to a report byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.. The medium Bloomberg also reported the news Wednesday.
The warrant was issued by the Joint Financial Securities Crime Investigation Team of the Seoul Southern District Prosecutors’ Office and the Second Financial Investigation Division as part of an ongoing investigation. Authorities accuse Kwon of violating the country’s capital markets law, but he is not the only one charged.
Prosecutors also issued arrest warrants for five other people according to the reports, which include Nicholas Platias, another of the founders of Terraform Labs and Han Mo, an employee of the company.
The six individuals are believed to be currently in Singapore. According to local media, the warrant is valid for one year and prosecutors are hoping to work with Interpol to carry out the arrests, as reported by the The Block.
Kwon wanted by authorities
The orders come about four months after the dramatic implosion of the Earth . At one point the third largest stablecoin by market an area or arena, online or offline, in which commercial dealings are conducted. capitalization, UST broke away from its expected price of USD $1 in mid-May, wreaking havoc on the broader digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset market.
Despite the multiple efforts of the organizations behind the project to recover parity, the stablecoin collapsed to zero. In a domino effect, UST’s sister cryptocurrency, LUNA, also plummeted, wiping some $40 billion from the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market and generating huge losses for investors.
The event has caused a sort of contagion effect in crypto space, with platforms like Travel y Celsius filing for bankruptcy, in part because of its large exposure to Earth . The cryptocurrency market, meanwhile, slowed and has not recovered from its more than 50% drop from last year’s prices.
The wider collapse has caught the attention of regulators around the world. In South Korea, authorities have been investigating the events since May. In July, prosecutors in the Asian country allanaron the home of the co-founder of Terraform Labs Daniel Shin, as part of a investigation into allegations of illegal activity after the fall of Earth .
Several lawsuits have also been filed against Earth and its principal founder, Do Kwon, in both South Korea and the United States. Several of these lawsuits accuse those responsible of fraud and Ponzi schemes.
Despite these allegations, Kwon has denied that the project was a scam. He also stated that he personally had lost almost all of his net worth in the accident of Earth . More recently, and n a interview In August, Kwon said South Korean prosecutors had not contacted him and that he had not been charged with anything.
LUNA and LUNC fall after the news
In the midst of the events, a new version of the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. LUNA experienced a sudden price spike last week. After the implosion, Kwon proposed to release Earth 2.0 and rename the old blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. as Terra Classic . The native currencies of each project are LUNA and Luna Classic (LUNC).
On Saturday, a bullish move took the price of LUNA to its highest level since its launch in May. The token soared more than 300% in one day, going from USD $1.9 to over USD $7, according to data from CoinMarketCap .
The previous version of Luna LUNC, has also been experiencing a price surge in recent weeks. The coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. doubled in price and reached USD $0.00058 last Friday, amid expectations for a community proposal for the Earth to introduce a new burning destroying a certain number of digital coins to reduce their issue. This method is used to fight inflation and increase the value of cryptocurrency. All token burning transactions are recorded in the blockchain as a transaction. Therefore, anyone can verify that the coins were destroyed. mechanism that would reduce the elevated supply of the token .
However, the gains gains refer to an increase in value or profit. for both tokens seem to be reversing now that the law is catching up with its founder Do Kwon. As of press time, LUNA has dropped 25% in price and is trading at USD $2.9. LUNC is down more than 12% while its price is around USD $0.0002975.
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash