South Korean prosecutors say Do Kwon ‘obviously on the run’, ask Interpol to issue red notice

South Korean prosecutors refuted Do Kwon’s claim over the weekend that he was not on the run and asked Interpol to issue a red notice against the Terraform Labs co-founder, heightening the public drama following the $40 billion wipeout of its cryptocurrency. starting in May this year.

The Seoul Southern District Attorney’s Office said Kwon was not cooperating with the investigation and told them (through his lawyer last month) that he had no intention of appearing for questioning, according to official statements quoted by Yonhap local media. Prosecutors asked the Seoul Foreign Ministry to revoke Kwon’s passport and said they had “circumstantial evidence” that Kwon was trying to escape.

An Interpol notice rougewhich is a call to law enforcement around the world, can prevent individuals from being issued visas, restrict their cross-border travel, and “provisionally arrest a person pending extradition, surrender, or similar legal action.”

Over the weekend, Kwon claimed he was not on the run from any government agency that had “shown interest in communicating.” He added in a tweet: “We are in full cooperation and we have nothing to hide. »

So-called UST stablecoin and Terraform Labs cryptocurrency LUNA dramatically imploded in May after investors lost faith in the effectiveness of its fundamentals. Major crypto exchanges including Binance and Coinbase have delisted the token and halted several of its trading pairs. (Many exchanges have since revived limited support for the old token.)

Relaunched LUNA Token Price

Kwon, with the approval of the Terraform community, relaunched the crypto project, but this time avoided mining a so-called algorithmic stablecoin. The depegging of TerraUSD (UST), the firm’s former stablecoin, caused the LUNA token to crash as they were intertwined.

The LUNA token crash also contributed to the wipeout of Three Arrows Capital, once a top crypto hedge fund. The fund’s demise also badly affected a number of crypto lenders from whom it had borrowed billions of dollars.

South Korea issued an arrest warrant for Kwon last week, a move that saw many investors sell their positions in the revived Luna token. “We are 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 coming months,” Kwon said in a tweet over the weekend.

In an interview with Coinage last month, Kwon a dit he had not been in contact with the South Korean authorities. After the two coins – Luna and TerraUSD – crashed earlier this year, which wiped out around $40 billion of hundreds of thousands of investor money, investors in South Korea and the United States have sued Kwon for illegal fundraising and fraud.

South Korean prosecutors charged Kwon with financial fraud. Terraform Labs and the DA’s office could not immediately be reached for comment.

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