A South Korean Court has issued an arrest warrant for Do Kwon, the co-founder of now embattled stablecoin issuer Terraform Labs.
The court also ordered the arrest of the head of research Nicholas Platias, as well as employee Han Mo and three others.
In May, Luna, and TerraUSD, both cryptocurrencies crashed, causing hundreds of investors to lose their investments.
Terra’s UST and LUNA tokens lost nearly $45 billion (€44 billion) in value within 72 hours leading to three cryptocurrency companies going bankrupt.
The token was relaunched in late May, amid uncertainties and widespread outrage regarding the failed project.
Reports indicate that authorities are now charging Do Kwon with the offense of violating the Capital Markets Act.
South Korean authorities had since then commenced investigations into the Luna collapse shortly after it unfolded, with many investors reporting the firm for fraud.