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Terra's Do Kwon is at risk of Interpol red notice from South Korean prosecutors

Kwon's whereabouts are unknown, although, the co-founder of Terra tokens denied rumours of being on the 'run' from government agencies. (Bloomberg)Premium
Kwon's whereabouts are unknown, although, the co-founder of Terra tokens denied rumours of being on the 'run' from government agencies. (Bloomberg)

  • An arrest warrant has been issued by the Seoul Southern District Prosecutors Office against Kwon who is the forefather of TerraUSD algorithmic stablecoin and sister token Luna that wiped out reportedly $60 billion in the cryptocurrency market.

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Terraform Labs CEO Do Kwon is at risk of an Interpol red notice. An arrest warrant has been issued by the Seoul Southern District Prosecutors Office against Kwon who is the forefather of TerraUSD algorithmic stablecoin and sister token Luna that wiped out reportedly $60 billion in the cryptocurrency market. Kwon's whereabouts are unknown, although, the co-founder of Terra tokens denied rumours of being on the 'run' from government agencies.

On Monday, the prosecutors office revealed that they are in the process of requesting Interpol to step in for capturing Kwon.

The Interpol red notice generally seeks support from law enforcement globally to make an arrest.

The prosecutors' office earlier said that there has been “circumstantial evidence of escape" ever since he left for Singapore, and that is why an arrest warrant was issued in the first place, reported Bloomberg.

Other prosecution sources said in a Yonhap News Agency that Kwon hasn't cooperated with the prosecution investigation, and around August he told the prosecution via a lawyer that he had no intention to appear before prosecutors for questioning.

The South Korean cryptocurrency developer had moved to Singapore where his Terraform Labs project is headquartered. His Singapore employment is due to expire in December this year, and chances are that it might get cancelled and push Kwon to return to his home country.

It is being said that an arrest warrant is issued against Kwon along with five others over the Terra collapse.

Earlier, Singapore's Straits Times newspaper mentioned that Kwon apparently applied to renew his Employment Pass (EP), which expires on Dec 7, but this may be in jeopardy as South Korean authorities have moved to invalidate his passport in a bid to force him to return.

On Sunday, Kwon tweeted over the allegations of being 'on the run' and not abiding by the law. He said, " am not “on the run" or anything similar - for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide."

His tweet added, "We are in the process of defending ourselves in multiple jurisdictions - we have held ourselves to an extremely high bar of integrity, and look forward to clarifying the truth over the next few months."

However, Kwon did not share any details of his location. He is still being searched and prosecutors believe he is not in Singapore.

In mid-May, amidst macroeconomic uncertainties that fuelled a deep bearish tone in global markets, had also made cryptocurrencies vulnerable. The worst to be hit were Terra tokens USD which erased its peg of $1, and its sister Luna which hit zero levels. This eroded billions of dollars of investors' wealth. The cryptocurrency market is still in the recovery stage from the Terra crash. A liquidity crunch has escalated in the crypto world with many exchanges opting for bankruptcy proceedings, or looking for fundraising or merger.

Following the crash of his previous Terra tokens, in late May, Kwon launched Terra 2.0, under which, the original Terra chain has been rebranded as Terra Classic. While a new chain called Luna was created with the existing name Terra and made available for trading.

On CoinMarketCap, at the time of writing, Terra Classic Lunc is trading at $$0.0002737 lower by over 11%. While Terra Luna shed more than 15% and is performing at $$2.54. In the last seven days, Lunc and Luna have nosedived by 27% and 49% respectively.

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