Alert Do Kwon, goes on the run

Justice is seeking Do Kwon, the founder of Terraform Labs, the parent company behind the Terra and LUNA cryptocurrency ecosystem.

South Korean prosecutors have asked Interpol to issue a fugitive alert for the creator as they investigate allegations of fraud and financial crimes in connection with his cryptocurrency implosion in May.

He is not the only company leader involved. In addition to Kwon, an arrest warrant has also been issued for the co-founder of Terraform Labs, the Greek Nicholas Platias, and four other people in connection with the sudden falls suffered by the electronic currencies of this company.

Terraform Labs has been in legal trouble for months.

The company has been under investigation for alleged fraud and tax evasion after South Koreans who invested in Luna and TerraUSD e-currencies sued Kwon and other co-founders last May following the collapse in value of both cryptocurrencies.

The popularity of the Luna and TerraUSD cryptocurrencies is also not new. Among investors, they were considered “stable currencies” because their value was pegged to the US dollar.

Do Kwon and company are accused of implementing a Ponzi scheme: a type of pyramid scheme by which supposed profits are paid to investors that are actually funds from subsequent investors.

The trap has ended in losses of several million dollars. Steps have also been taken in the regulations of the Asian country. The case has led to the passage of a specific law to regulate cryptocurrency exchanges in South Korea.

In a report, the Central Bank of South Korea noted that the collapse of TerraUSD and Luna was a major factor in the global cryptocurrency market, shrinking by more than 40% compared to the end of 2021, when its market value exceeded the 2.3 trillion dollars.

Where is Do Kwon located ?

The International Criminal Police Organization or International Police (Interpol) launched a “red notice” on Tuesday, which involves a request to law enforcement agencies around the world to locate and provisionally arrest the fugitives “pending extradition, the surrender or similar legal action”. In total, the notice extends to the 195 member countries of the agency.

So far, Do Kwon has not been arrested and his whereabouts are unknown. The organization has not been able to locate him, something that clashes with the latest statements of the Asian creator.

He insisted last Sunday that he was not running from any “government agency that has shown an interest in communicating.” “We fully cooperate and have nothing to hide,” said in a tweet.

Do Kwon

The founder of Terraform Labs hopes that everything remains in a misunderstanding and points out that he is at the disposal of justice: “We are in the process of defending ourselves in multiple jurisdictions: we have maintained an extremely high integrity bar and we hope to clarify the truth in the next months”. Crypto Swiss Hub.

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