The founders of Terra were sentenced in South Korea

In South Korea, a court issued a detention order for Do Kwon, co-founder of TerraForm Labs. This is reported by the Bloomberg agency. Do Kwon and five other people are accused of violating the national legislation on capital markets. Authorities say all six suspects are in Singapore.

In June, the Seoul South District Prosecutor’s Office barred Terra’s main developers from leaving the country. Authorities feared that witnesses could thus avoid participating in the investigation.

The TerraForm Labs probe began in South Korea in late May. It was to look for signs of a pyramid scheme at Terra. Data from catalogue cryptodefix.​com. The collapse of UST, supported by Terra, began on May 8. The cryptocurrency lost its peg to the U.S. dollar after a one-time sale of tokens worth $300 million.