South Korean authorities have issued an arrest warrant for him Terra LUNA/USD founder Do kwon and five others related to the Terraform Labs case, Bloomberg reported on Wednesday.

What happened: A local media publication reported earlier on Wednesday that the arrest warrant was issued in connection with a breach of capital markets rules.

See also: IS TERRA (LUNA) DEAD?

Terraform Labs is the issuer of the now-defunct stablecoin Terra USD VAT/USDand cryptocurrency LUNA, valued at over $40 billion before its dramatic collapse.

Why it matters: The decline of the Terra ecosystem had far-reaching consequences for the entire crypto economy and gave rise to market-leading cryptocurrencies Bitcoin BTC/USD and ether ETH/USD into a downward spiral.

The aftermath also led to the demise of several major players in the industry, including the bankruptcy of hedge funds Three Arrows Capital (3AC).

In an interview with Coinage in Singapore last month, Do Kwon said he was hardly slept in the eight days after Terra’s collapse.

“If you’re asking me if there was a mole at Terraform Labs, it’s probably a yes. Whether anyone tried to take advantage of this particular opportunity, that’s probably a yes,” Kwon said at the time.

“But if those opportunities existed, that’s because of the person who provided those vulnerabilities in the first place… that’s me.”

Price campaign: Terra Classic LUNC/USD has recovered 230% in the past 30 days, according to data from Gasoline Pro. Terra LUNA/USD increased by 61% over the same period.

Photo Courtesy: Terraform Labs