Interpol has requested that law enforcement agencies globally find and arrest Do Kwon, the co-founder of Terraform Labs.
Currencies created by him have seen their value plummet by an astounding $60 billion, over which he is facing charges, Bloomberg reported.
On September 26, prosecutors in Seoul reported that Interpol had issued a Red Notice for Kwon in a series of developments related to a digital asset collapse of $2 trillion, exposing practices involving exacerbated risk.
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It’s confirmed that Do Kwon is on the run, as Bankless Times reported recently.
Kwon fled to Singapore, whereabouts now unknown
Among the crimes Kwon and accomplices are accused of is breach of capital markets law. Terraform Labs, which is now defunct, was based in Singapore, where Kwon moved earlier this year. He left the city-state on September 17, and now, his whereabouts are unknown.
The spectacular collapse of UST
Terraform Labs created Terra (LUNA) and the TerraUSD (UST) algorithmic stablecoin, both of which collapsed in May, generating giant losses in already bearish crypto markets. UST was supposedly pegged to the US dollar and was meant to stay at $1.
It lost its claimed dollar peg because there was no real backing. Crypto ardor in South Korea is giving way to disdain.
The domino effect
The collapse of Do Kwon’s currencies and the overall bearish sentiment resulted in leading market institutions like hedge fund Three Arrows Capital and associated brokers and lenders like Voyager Digital Ltd. and Celsius Network Ltd. announcing bankruptcy.
Kwon was not cooperating
Prosecutors in South Korea found evidence Kwon was trying to escape when he moved to Singapore, which is one reason they issued an arrest warrant for him even though he claimed that he was cooperating at the time.
Previously, Kwon tweeted, “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.”