By Geoffrey Smith
Investing.com -- A court in South Korea has issued an arrest warrant for Do Kwon, the founder of the Terra/Luna stablecoin network whose collapse earlier this year triggered a devastating selloff in cryptocurrencies worldwide.
The court has also issued warrants for five other members of Do's Terra Labs team, Bloomberg reported on Wednesday, citing the local prosecutor's office.
It added that all six are currently located in Singapore, which does not have a mutual extradition treaty with South Korea.
The news comes two months after prosecutors raided the home of Daniel Shin, another co-founder of Terraform Labs, the partnership that established the Terra/Luna network.
Kwon has said he intends to cooperate with law enforcement as circumstances require.
The stablecoin system created by Do had collapsed in May, causing $45 billion of losses and starting a chain of defaults and bankruptcies in the fledgling crypto investment industry.
In an interview last month with crypto media startup Coinage, Do had implicitly blamed the collapse on an unnamed insider who had allowed others to exploit a vulnerability in its system.
"If you're asking me whether there was a mole at TFL, that's probably, 'Yes,'" Do said. "Whether somebody tried to take advantage of that particular opportunity, I would say that the answer is, 'Yes'."
However, he acknowledged that he had to take the ultimate responsibility for any such vulnerabilities.
"If those opportunities existed, then the blame is on the person that presented those vulnerabilities in the first place," Kwon said. "I, and I alone, am responsible for any weaknesses that could have been presented for a short seller to start to take profit."