After a spectacular crash that cost more than $50 billion, the crypto Terra lost all its value in early 2022. Korea has opened an investigation against its founder, Do Kwon, and suspects he is on the run.
Is Do Kwon on the run? In any case, this is what the Korean judiciary thinks. The founder of the Terra and Luna cryptocurrencies is currently under investigation in his country, South Korea. He is suspected of illegal activities, which investigators say led to the collapse of cryptocurrencies in May 2022.
While the investigation is still ongoing, Korea has issued an arrest warrant for Do Kwon on September 14, 2022. Despite the issuance of this arrest warrant, Do Kwon is said to be untraceable and refuses to cooperate with prosecutors, they say. Most of all, they believe he is about to flee — and to prevent him from doing so, they just asked Interpol (the International Criminal Police Organization) to issue a red charge against him, according to Techcrunch.
Korea doesn’t know where Do Kwon is
According to Bloomberg, “ Prosecutors asked Interpol for help locating Do Kwon, whose whereabouts are unknown, and delivering it to Korea The Seoul prosecutor’s office, which is handling the case, also said Do Kwon would refuse to cooperate with the judiciary. He allegedly told them he did not intend to appear for questioning. Techcrunch also indicates that the officer Justice Department allegedly asked the Korean Foreign Minister to suspend Do Kwon’s passport because he had indications that he was trying to flee.
Also according to Bloomberg, Interpol typically issues a “red notice” when a country makes such a request — issuing such a notice usually takes a week. According to the Interpol website a red notice is a request to law enforcement agencies around the world to locate and provisionally arrest a person pending extradition, surrender, or other legal process “.
Korean authorities believe Do Kwon may be in Singapore, a suspicion denied by the city-state. Since the prosecutors’ announcement, Do Kwon has not commented publicly. His last message published on Twitter of September 17, explaining that he was not trying to flee Korean justice. ” I’m not at large, or anything like that – we’re working with all government agencies that have tried to contact us, and we have nothing to hide ‘ he had written. His message clearly did not convince the Korean justice system.
A crash of more than 50 billion dollars
Do Kwon’s troubles started in May when the cryptocurrencies Terra and Luna collapsed. The latter were among the most valuable crypto projects and the Terra token was presented as a stablecoin, a digital currency pegged to the US dollar. But after a panic, Terra’s value plummeted, pulling Luna, its sister cryptocurrency, down – a crash of impressive magnitude, valued at more than $50 billion.
The collapse of Terra and Luna affected many individuals, but also hastened the bankruptcy of the investment fund 3 Arrows Capital – which in turn impacted many companies. Since then, Do Kwon and his team have attempted to launch a new cryptocurrency project, a hitherto unsuccessful attempt to recover some of the funds lost in the crash.