South Korean prosecutors have stated that Do Kwon’s claim that he is not on the run is false, and they have requested that Interpol issue a red alert for the Terraform Labs co-founder. This adds to the public drama that began when his $40 billion cryptocurrency startup went bankrupt in May.
According to official remarks quoted by local media outlet Yonhap, the Seoul Southern District Prosecutor’s Office stated that Kwon was not cooperating with the investigation and had informed them (through his lawyer last month) that he had no intention of appearing for interrogation. Prosecutors have requested that Kwon’s passport be confiscated, claiming that they have “circumstantial evidence” that he intends to flee.
Interpol’s “red notice,” which is a worldwide appeal to law enforcement, can prevent people from receiving visas, limiting their cross-border travel and “provisionally arresting a person pending extradition, surrender, or equivalent legal action.”
Over the weekend, Kwon stated that he was not on the run from any government agency that had “expressed an interest in communication.”
“We are fully cooperating, and we have nothing to hide,” he tweeted.
Terraform Labs’ so-called stablecoin UST, and cryptocurrency LUNA crashed sharply in May when investors lost faith in their fundamentals. Binance and Coinbase, two major cryptocurrency exchanges, delisted the token and discontinued several of its trading pairings.
Kwon has resurrected the crypto project with Terraform community approval, but this time has avoided operating an algorithmic stablecoin. The de-pegging of TerraUSD (UST), the firm’s prior stablecoin, caused the LUNA token to crash because they were linked.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”