Do Kwon, creator of Terraform Labs, is wanted in connection with the eradication of $60 billion worth of cryptocurrency he invented. Followingly, a request was made by Interpol for the assistance of law enforcement agencies worldwide in locating and arresting Kwon.
South Korean authorities have charged Kwon and five others with offenses, including violations of capital-markets law.
In the most shameful chapter of a $2 trillion meltdown in digital assets that exposed enormously dangerous practices, Seoul prosecutors said via text that the international police agency had issued a Red Notice for Kwon.
At the beginning of this year, Kwon relocated from South Korea to Singapore, where he established himself for his now-defunct Terraform Labs. However, on September 17th, the city-state announced that Kwon was no longer present there. As a result, the prosecution increased its search efforts to track him down.
The Crash and its Widespread Effect
TerraUSD and its companion token Luna are algorithmic stablecoins created by Terraform Labs. These two coins crashed in May, causing widespread losses in the cryptocurrency market that was already hurting from the tightening monetary policy.
Authorities all over the world are looking at what happened after the crash of digital assets to figure out how to stop it from happening again. South Koreans used to be very excited about cryptocurrency, but now they are becoming more skeptical.
Three Arrows Capital, a crypto hedge fund that was formerly quite successful, was brought to its knees when Terra’s exchange was shut down, and the market as a whole began to tank.
Lenders and brokers, such as Voyager Digital Ltd. and Celsius Network Ltd., were also among the businesses negatively impacted by the contagion.
TerraUSD, commonly referred to as UST, was established as part of a convoluted agreement, including Luna, with the intention of maintaining a value of $1 at all times.
However, the system depended on trust in the ecosystem developed by Kwon, a 31-year-old graduate of Stanford University’s computer science program. When the trust was no longer there, the agreement came to an end.
Kwon is Wanted in South Korea
Authorities in South Korea have issued an arrest order for Kwon in part, citing evidence that he has been able to avoid capture since his move to Singapore.
Kwon has said on Twitter that he has held himself to a very high level of honesty while defending himself in many places and is looking forward to making the truth clear over the next few months. Contrarily, South Korean prosecutors disagreed with the claim that he had been helping.