When the terraUSD stablecoins depegged in May, it precipitated a$48 billion collapse in the luna cryptocurrency.
Kwon is one of several Terraform employees for whom an arrest warrant was issued, Chosen Ilbo reports.
Itmirrors moves by the the US Securities and Exchange Commissionto designate several major cryptocurrencies as securities.
Terraform declined to comment.
Terraform is known for its dual cryptocurrencies UST and luna.
Like all stablecoins tied to the US dollar, UST was designed to always be worth $1.
In May, however, the UST stablecoin depegged after $2 billion was removed from the protocol.
(Read a more detailed explainer here.)
Its inability to repay creditors led Voyager Digital, a lending platform,to also declare bankruptcy.
