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

South Korean prosecutors denied 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, public drama escalation after writing off $40 billion of his crypto startup in May of this year.

The Seoul Southern District Prosecutors’ Office said that Kwon did not cooperate with the investigation and told them (through his attorney last month) that he did not intend to appear for questioning, according to the statements. official statement cited by local media Yonhap. Prosecutors asked Seoul’s foreign ministry to revoke Kwon’s passport and said they had “situational evidence” that Kwon was trying to flee.

An Interpol red noticeis a worldwide call for law enforcement, which can prevent individuals from being granted visas, restrict their cross-border travel, and “temporarily 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 the media”. He added in a tweet: “We are fully cooperating and we don’t have anything to hide.”

Terraform Labs’ so-called UST stablecoin and LUNA cryptocurrency are significant explode in May after investors lost confidence in the effectiveness of its fundamentals. Major crypto exchanges including Binance and Coinbase removed the token and stopped some of its trading pairs. (Many exchanges have since restored limited support for the old token.)

Price of LUNA token revived

Kwon, with the approval of the Terraform community, revived the crypto project, but this time avoided operating so-called algorithmic stablecoins. The dependency of TerraUSD (UST), the company’s former stablecoin, has resulted in the crash of the LUNA token as they are pegged to each other.

The problem of the LUNA token also contributed to the obliteration of Three Arrows Capital, used to be a famous crypto hedge fund. The fund’s collapse also severely affected several crypto lenders from which it borrowed billions of dollars.

South Korea issued an arrest warrant for Kwon last week, a move that has seen many investors sell their positions in the resurgent Luna token. “We are in the process of defending ourselves in many jurisdictions – we have held ourselves to an extremely high level of integrity and look forward to having the facts cleared up over the next few months,” Kwon said in a tweet. weekend.

In an interview with Coding last month, Kwon said he did not contact the Korean authorities. After two coins – Luna and TerraUSD – crashed earlier this year, costing about $40 billion out of hundreds of thousands of investors’ funds, investors in South Korea and the US filed lawsuits against Kwon. about fraud and illegal fundraising.

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

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