Editing by Nathaniel Cajuday
South Korean Do Kwon, the chief executive officer and founder of Terra, has been placed under a red notice by the Interpol, where law enforcement agencies worldwide were tasked to find and arrest him. Prior to that, an arrest warrant was issued against him in South Korea for violating the country’s capital markets laws.
Following this, his passport was canceled by the Seoul Southern District Prosecutors’ Office. The prosecutors stated that he had “no intention to appear before us for questioning.”
These all boiled down to the collapse of Terra’s algorithmic stablecoin USDT, the largest stablecoin by market cap, and its crypto LUNA last May, where the crash resulted in $60 billion worth of losses. (Read more: Newsletter: What happened to USDT, UST, and LUNA | May 12, 2022)
In a statement last June, Do Kwon dismissed the allegations that he cashed out $80 million every month consistently for nearly three years before the collapse. (Read more: Do Kwon Denies Cashing Out $2.7 Billion worth of LUNA before The Crash)
To try and get up from the losses, they tried to revitalize the Terra Blockchain by resetting the network ownership to 1B token. However, after reactivating Luna 2.0, its value immediately fell to $5.98, or down more than 70% after the blockchain Terra relaunched. (Read more: Luna V2 Price Pumps Then Dumps to $5 Immediately After Relaunch)
The issue revolving around the crypto firm has recently triggered the US Congress to draft a bill to ban algorithmic stablecoins. The bill would make it temporarily illegal to issue or create new coins for 2 years. (Read more: US Solons Eye to Ban Algorithmic Stablecoins for 2 Years)
Currently, Do Kwon’s whereabouts are still unknown after the police in Singapore–where he reportedly went after the crash–said that he was not in the country. He is also not disclosing his location. In response to a question on Twitter, Kwon stated that “I’m writing code in my living room.”
Last June, Terraform Labs employees—former and current—were sanctioned by the Seoul Southern District Prosecutor’s Office with a travel ban to eliminate the possibility of key officials fleeing abroad. (Read more: Terra Employees Banned from Leaving South Korea)
This article is published on BitPinas: Interpol Issues Red Notice for Terra’s Do Kwon
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