A South Korean court has issued an arrest warrant for Do Kwon, the founder of Terraform Labs. Additionally, investigators have sought Interpol’s help to track him down. The prosecutors on the case allege that Kwon has been on the run, and ‘notification upon arrival’ has been placed on him. Investigators will be notified once he enters South Korea.
The Chase for the Arrest
Do Kwon, the developer of TerraUSD and Luna cryptocurrencies, is believed to have been in Singapore since the spring. He has been in trouble since his issues with the SEC over money laundering. However, Singapore authorities highlight that he is no longer there. The failure to locate him made the South Korean investigators push Interpol to issue a ‘red notice.’ The red notice would give officers in member countries the go-ahead to provisionally arrest Kwon.
The South Korean court’s arrest warrant includes five other individuals believed to have violated the nation’s capital market rules. There are no charges, but investors cite that there was defrauding to promote the coins.
“I am not ‘on the run or anything similar – (from) any government agency that has shown interest to communicate, we are in full cooperation, and we don’t have anything to hide,” Do Kwon said in a tweet thread. He also cited that they looked forward to clarifying the truth over the next few months.
In May, Terraform Labs’ stablecoin, UST, and LUNA cryptocurrency imploded after investors lost faith in the efficacy of its fundamentals.
The pursuit of individuals in crypto is rarer. Thus, the case is eye-catching as a sign of how aggressively law enforcement will pursue crypto-related illegal activities moving forward.
In an interview last month, Kwon said that South Korean prosecutors had not been in contact with him, and he is yet to be charged with anything. On the other hand, law enforcement is barring its employees from leaving the country.
Final Thoughts
Law enforcement experts believe that the prosecution of Kwon is possible but challenging. The case may be challenging given the vagaries of crypto, with a blurry line between fraud and risky investment. In this case, it is hard to prove if Kwon misled investors in stumping for the coins or was mounting a good-faith campaign for a risky-but-legal-venture.
Even though Kwon says he is not on the run, Seoul prosecutors say he is.
We will keep you updated as the story unfolds.
