Interpol has issued Do Kwon an alert asking law enforcement agencies all over the globe to find and arrest the Terraform Labs founder. A blockchain startup that was earlier in the year collapsed.
The $40 billion in invested capital was wiped away by Terra cryptocurrency (Luna) and TerraUSD (UST). This prompted a flurry that saw prosecutors launch investigations into Kwon as well as his associates.
TechCrunch was told by a spokesperson from South Korean prosecutors that Kwon had received a notice. The notice could be a negative precedent and hinder innovation in the crypto sector, especially if Kwon didn’t knowingly defraud investors and customers, as many industry executives have said in recent weeks.
Having met Do Kwon… Leaving aside how he is a person…” Having met Do Kwon… leaving aside how he’s a person…
Over the last few weeks, South Korean prosecutors intensified their investigation into Kwon. Kwon was accused of “not cooperating” in an earlier statement this month. Kwon was asked to issue a red notice for Kwon at the beginning of the month.
Kwon’s current whereabouts are not known at this time. After South Korean authorities confirmed his red notice, Kwon tweeted Monday that he wasn’t hiding.
Kwon said, “I’m writing code in my living room,” and added that he makes no effort to hide it. “
Investors lost faith in the company’s fundamentals and Terraform Labs’ stablecoin, UST (or cryptocurrency Luna), crashed in May. After TerraUSD (UST) was depegged, the firm’s previous stablecoin, the Luna token, crashed.
Three Arrows Capital, once a highly-regarded crypto hedge-fund, was also severely affected by the crash in Luna token.
Kwon was detained by South Korea earlier in the month. Kwon was arrested by South Korea earlier this month.
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