Terra’s native token Luna faced a high significant downfall in the price because of the arrest warrant order against the founder.
Luna is the native token of the Terra blockchain. Terra blockchain was founded by Terra from Labs. Terraform labs was founded by Do Kwon in January 2018. Kwon launched Terra blockchain with Luna coin & UST stablecoin but due to the failure of the project under extreme volatility in May of this year, the team again relaunched Luna coin without any stablecoin.
At present, almost every crypto asset is down because of the announcement of the Fed Rate hike news.
Ethereum (ETH) is down by around 0.66% and Bitcoin is down by around 4.78%.
But the downfall in the price of the Luna coin over the last 24 hours is more than 33%. Here this downfall in the price of Luna is not a usual crash like other crypto assets.
This main reason behind the sudden downfall in the price of the Luna coin is the bad news for the founder of this crypto project and another 5 other team members.
On 14 September, South Korean local news media outlet Chosun Ilbo reported that a Seoul court issued an arrest warrant against Do Kwon.
Allegedly Kwon violated the Korean capital markets law and it was a legal response by the respective government agencies against Kwon.
Now it will be interesting to see whether Kwon will go himself to the Suel police station to hand over himself or will run away to an unknown place.
Last month, in an interview with Coinage, Kwon said that he will cooperate with enforcement agencies regarding the Terra project. Opposite of this, the Seoul prosecutor’s office claimed that Kwon resides in Singapore.