” I’m not on the run. That’s Do Kwon’s statement in a Tweet last week as he is actively sought by South Korean authorities. The latter argue for their part that the co-founder of Terraform Labs is clearly on the run. And he is now under a red notice from Interpol.
The escape after the crash
Do Kwon, the co-founder and CEO of Terraform Labs, is at the heart of this story. It all starts with the crash of Terra (LUNA) and TerraUSD (UST) a few months ago. To go back a bit on history, Do Kwon founded Terraform Labs in 2018. His blockchain allowed him to develop Terra (LUNA) and TerraUSD (UST). He came up with the idea of creating an “algorithmic stablecoin” where LUNA could be burned in order to “monetize” the UST to stabilize it whenever it loses its dollar peg. And vice versa.
After the collapse of his cryptos (it was in the month of May), Do Kwon evaporates into thin air with the 40 billion dollars of investors. The latter accuse the 31-year-old Korean national of fraud and appeal to the competent authorities. He has since been wanted by the courts, but remains active on Twitter where he has also claimed not to be on the run. Rumor has it that Do Kwon has settled in Singapore after leaving Korea at the end of April. But local police suggest the wanted man was not on their territory.
An Interpol red notice against Do Kwon
Without ever revealing his whereabouts, Do Kwon continues to communicate on Twitter. A few days ago, he said he wanted to cooperate with the authorities when the South Korean court issued an arrest warrant against him. Here are his statements: I’m not on the run or anything like that […] We have nothing to hide “. He adds : ” We are in the process of defending ourselves in several jurisdictions (…) and we look forward to clearing things up over the coming months. »
On September 18, South Korean prosecutors indicated otherwise. They confirm that Do Kwon is clearly on the run. Prosecutors have been investigating Terra (LUNA) since its crash. They have already revoked the passports of five people, including Kwon and CFO Han Mo. The Seoul court also issued an arrest warrant for Kwon and five other company executives in early September. They then asked Interpol to issue a red notice against Do Kwon, which is now done.
the crash directly affected investors. Beyond that, the collapse of Terra (LUNA) would also have caused more than $500 billion in losses across the entire global crypto market according to analyses. Is it over with Terra (LUNA)? Will crypto be able to recover from this dramatic fall? What fate does justice reserve for Do Kwon? Case to follow.
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