Monday, December 5, 2022
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Do Kwon Worldwide Search Begins As Interpol Issues Red Notice for Terra Founder

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Interpol joins the quest to bring Terra’s founder to the book.

Following an arrest warrant issued against Do Kwon, the founder, and CEO of TerraForm Labs, by a South Korean court, Interpol has issued a red notice to law enforcement agencies in this regard.

According to a Bloomberg report today, Interpol has requested that global law enforcement agencies should track and arrest Kwon to face charges about a $60 billion wipeout of cryptocurrencies he created. The development was shared with Bloomberg in a text message by prosecutors in Seoul.

Per a statement on the website of Interpol, the international policing organization defined a Red Notice as a “request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.”

Kwon’s Legal Woes

It is noteworthy that the recent development comes a week after Korean authorities reportedly asked the international policing organization to issue a red notice for the TFL founder.

Recall that an arrest warrant was issued for Kwon and five of his associates by Korean authorities two weeks ago. The TFL founder and his associates were meant to face charges related to an alleged violation of the country’s capital markets rules.

However, all efforts to locate Kwon have not yielded positive results, prompting authorities to believe he is on the run. Although Kwon said he was not on the run in a long Twitter thread, the whereabouts of the TFL executive are still unknown. As reported by TheCryptoBasic, Kwon managed to transfer $250,000 worth of USDC to an unknown wallet while on the run.

Terra’s Crisis and Subsequent Collapse

Terra has been in the news since early May after its ecosystem collapsed, following the depeg of its algorithmic stablecoin UST (now referred to as UST Classic) from the U.S. dollar.

With USTC losing its dollar peg, it also took a huge toll on all Terra’s ecosystem tokens, including Luna (now referred to as Luna Classic). Both USTC and LUNC crashed massively, leading to the wipeout of over $60 billion.

Unfortunately, the TFL team is not focused on reviving its classic tokens from the ashes, as the company opted for a different approach to compensate victims of its ecosystem collapse.

However, LUNC investors are committed to reviving the crypto asset’s value by burning and staking a large portion of the token in circulation.

At press time, Terra tokens are down based on the current crisis of the project. LUNC is down 17.6% in 24 hours, while LUNA is down 14.9%, according to data on Coingecko.

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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