Interpol Issues Red Notice for Terraforms Labs Founder Do Kwon, South Korea says

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Key Takeaways:

  • Earlier this month, the court in South Korea issued an arrest warrant for Do Kwon.
  • Kwon is facing charges related to the $60 billion wipeout of cryptocurrencies he created.

Prosecutors in Seoul, South Korea, have revealed that Interpol has issued a red notice for the Terraforms Labs Founder Do Kwon.

A Red Notice is defined as a request to law enforcement across the world to locate and further provisionally arrest a person pending extradition, surrender, or any similar legal action.

The latest development comes a week after the Singapore Police Force confirmed to the press that Kwon was no longer in the city-state. Do Kwon then tweet that he is in “full cooperation” with authorities and has “nothing to hide”? Earlier this month, the court in South Korea issued an arrest warrant for Do Kwon.

Do Kwon is currently facing charges in South Korea related to the $60 billion wipeout of cryptocurrencies he created. Officials have also accused Kwon and five others of crimes, including breaches of capital-markets law.

Prosecutors have further requested the foreign ministry to invalidate the passports of the five South Korean nationals under investigation. 

“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,” Kwon has previously said on Twitter.

Terraform Labs was behind the making of the TerraUSD algorithmic stablecoin and its sister token-Luna. Both coins crashed in May and lost their US dollar peg, causing billions of dollars worth of liquidations across the crypto market.

Following this, leading crypto exchanges such as Binance and Coinbase delisted the token and discontinued several of its trading pairs.

South Korea’s financial authorities state that around 280,000 investors were believed to be holding about 70 billion Luna coins as of late. The prosecutors also raided the home of Terraform Labs co-founder Daniel Shin in July as part of an investigation into allegations of illegal activity behind Terra’s collapse.

In Mid-May when Do Kwon first started facing prosecution charges, an LKB & Partners representative had said, “The design and issuance of Luna and Terra to attract investors, but the failure to properly inform them about the flaws and the unlimited expansion of Luna’s issuance amounted to defrauding investors.” LKB & Partners is the law firm hired by the five investors bringing charges against Terraform Labs.

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Saniya Raahath
Saniya Raahath

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