Terra Luna Crashes 50% As South Korea Issues Arrest Warrant For Founder

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Last Updated on 17 September 2022 by CryptoTips.eu

Jeroen Kok

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Last week crypto investors who had previously lost money on their Terra investment were hopeful when the Luna and Terra Classic coins went into a very bullish pump. Winnings of 200% in only a few days were noted.

Now, as South Korea has issued an arrest warrant for Do Kwon, the Terraform Labs CEO and founder of the Terra coins, the value of both coins has once again collapsed.

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280,000 South Koreans

South Korean and Japanese youngsters were the original crypto investors. Back in 2017, when Bitcoin hit $20,000 for the very first time, it was estimated that one in three young South Koreans had some sort of crypto investment. When the 2018 crypto crash happened, the government in Seoul put safety measures in place so that investors would be better protected in the future.

However, when Terra’s Luna coin started to skyrocket in 2021, many once again bought into the hype. After the dust settled of the Terra crash in May of this year, it became clear that some 280,000 South Koreans had invested in Luna.

Do Kwon, the coin’s founder, fled to Singapore but has now been informed that his passport was revoked, which means, in theory, that he would have to return to Seoul within 14 days after receiving the notice of revocation.

A Terraform Labs spokesperson declined to comment.

Terra’s new Luna coin, which skyrocketed more than 200% last week and changed hands for $7, is now  back down to $3, meaning it has lost some 50% in a matter of days.