Do Kwon: Interpol Issues Red Notice for Terraform Labs Co-Founder

Interpol has issued a red notice for Terraform Labs co-founder Do Kwon, according to a report from Bloomberg.

Prosecutors in Seoul said Monday in a text message the international police organization has issued a Red Notice for Kwon.

The latest inglorious chapter of a $2 trillion rout in digital assets that exposed hugely risky practices.

Neither Interpol nor Kwon immediately replied to emails seeking comment.

South Korean officials have charged Kwon and five others with various offences, including violations of capital-markets law.

Kwon traveled from South Korea to Singapore earlier this year, where his now-defunct Terraform Labs had a presence, but his whereabouts became uncertain after the city-state said on Sept. 17 that he was no longer there. Prosecutors then increased their attempts to find him.

TerraUSD algorithmic stablecoin and its sibling token Luna were created by Terraform Labs.

Both coins crashed in May, causing massive losses in crypto markets that were already hurting from tightening monetary policy.

Kwon has yet to issue a statement via Twitter, but in prior tweets he has maintained that Terraform Labs is defending itself in multiple jurisdictions.

“Unless we are friends, have plans to meet, or are involved in a GPS-based Web3 game you have no business knowing my GPS coordinates,” Kwon tweeted earlier.

Kwon was believed to be in Singapore, where he has a house, but authorities have established that he is not there.

However, iexclusivenews Nigeria reports that South Korean prosecutors earlier stated that Kwon was “clearly on the run” and not cooperating with investigations.

Digital assets have yet to recover, and authorities around the world are poring over the ruins to figure out how to avoid a repeat. In South Korea, previous enthusiasm for cryptocurrency is giving way to growing skepticism.

What your Need To Know

Terra’s demise, combined with the broader market rout, resulted in the demise of Three Arrows Capital, a once-promising crypto hedge fund.

Lenders and brokers including Voyager Digital Ltd. and Celsius Network Ltd. were also hit by the contagion.

In a complicated agreement including Luna, TerraUSD, also known as UST, was supposed to maintain a steady value of $1.

However, the system was dependent on trust in the environment developed by Kwon, a 31-year-old computer science student at Stanford. The agreement fell apart when the trust vanished.