South Korean Authorities Out To Catch The Kwon
In today's edition of YIYL (You Invest, You Lose) we go back and rehash an old story that clearly has some juice left in the squeese. I was calling out Luna long before the crash but that doesn't matter now and plenty of people who told me I'm stupid for making those claims back then are trying to memory hole their mistakes now but their balance sheets are clearly not looking too pretty.
Since the 40 billion dollars blow-up, we've seen Do Kwon and Terra labs reboot the project with Terra Classic and Fork it with the new Terra in the hope of robbing a few new Peters to try and pay back all the pauls that were well and truly rekt by this project.
In shitcoin land you can tend to get away with quite a bit, plenty of scammers are walking around and will never be brought to justice and that's sad for those they rekt, but a good lesson for those that choose to learn from it.
Since the reboot of Luna, the community behind it seems to want to simp for Do one more time and give him another chance at taking more of their money, which is great for them, do as you like, I am just here to watch and enjoy my popcorn.
South Korea cleaning house
But then I turn of events this week with A South Korean court has issued an arrest warrant for Do Kwon, the primary developer of cryptocurrencies Luna and TerraUSD, whose spectacular collapse in May roiled crypto markets around the world.
South Korea has already been cleaning up the shitcoin space with a come down on exchanges who don't follow the rules, but I didn't know they were looking at going after individual projects too.
But now it all is starting to come together, the raid on exchanges were the investigators looking for evidence to determine whether Terra founder and CEO Do Kwon may have intentionally spurred the collapse of the ecosystem. Since these are centralised institutes in South Korea they can be pressured for this information and trading logs and account details could be used to builda. case.
The class action lawsuit
Since the collpase of Terra many investors didn't want to take it on the chin and ran to big daddy government as well as their lawyers to drum up a case and Terra Labs is facing a class action lawsuit from Korean investors, which I guess was used as another reason to launch the investigation into exchanges.
South Korean authorities have also banned Terrafrom Labs employees both current from leaving the country as they try to get to the bottom of the entire mess, but I guess that didn't apply to Kwon.
Kwon said he had moved to Singapore because of concerns about his family's safety and rejected suggestions that the relocation was due to the crash or an attempt to evade investigators.
Now prosecutors are planning to arrest and extradite Mr Kwon from Singapore by nullifying his passport and working with international policing organisation Interpol, the Financial Times reported.
How the market reacted
On the breaking news, the market clearly didn't like that the central figure behind these coins was a target for an arrest and began to dump
| Luna | Luna Classic |
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The story never ends
For now, we don't know whats going on and can only wait for media releases and speculate on insider Twitter gossip, which I am not going to do yet. Do I think this is the end of the Terra story?
No, This is going to be a long and drawn-out legal battle, I'm sure Kwon has the funds to shelter himself having had big money backing this project
I also think that authorities are mindful that the project is still trading and people have lost money and may want to try and get some settlement out of terralabs to try and return some funds to people, but how that could be done is anyones guess.
Who knows what happens to Terra and Do Kwon from here? I sure don't but I am sure Netflix are licking their lips to try and get the rights to the documentary or movie.
Sources:
Have your say
What do you good people of HIVE think?
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sooner or later someone will have to pay for all these scams
I do hope people are held responsible for their mistakes, I think its a shame that retail always need to take responsibility, which of course they should for investing in scams, but scammers should also be held accountable
https://twitter.com/noadvice3/status/1570648054583234560
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Another day another scan and another story. It’s never ending, even after so many scams. And people are still not cautious 😒
Lol indeed, and I keep warning about it only to be told im stupid, close minded and jealous that I am not rich
This will be interesting to follow with a lot of popcorn around!
Lol I've added a google alert for it, I am so ready
Dear @chekohler!
Perhaps the ruling class of South Koreane government had a secret deal with Mr.Kwon.
The majority of investors will lose, and only the ruling class will benefit.