Do Kwon, the Crypto Boss, Terra Luna, is a fugitive from Interpol

Do Kwon, the Crypto Boss, Terra Luna, is a fugitive from Interpol-Coin Market

South Korean prosecutors announced that Kwon Do-hyung the founder of the crypto coin Terra (Luna) and five of his colleagues became international fugitives, due to a financial security breach as a result of the fall in the price of the Tera (Luna) coin. He is facing prosecution in the case of a fantastic fall in the value of the crypto market.

Citing Bloomberg, Monday (26/9/2022), prosecutors in Seoul, South Korea said Monday in a text message that the international police organization had issued a Red Notice for Kwon. This is the latest embarrassing period of a US$2 trillion crypto market loss case that exposes very risky investment practices

Through his Twitter account @stablekwon, Do Kwon said he had not run away or anything like that, and had communicated with the authorities.

“We are in the process of defending ourselves in various jurisdictions, and we have held to the very high integrity of clarifying the truth over the next few months,” he tweeted Sunday (18/9/2022).

South Korean officials accused Kwon and five others of crimes including violating capital market laws. Kwon earlier this year moved from South Korea to Singapore, where his now-collapsed Terraform Labs project has offices, but its location became unclear after Singaporean authorities on September 17, 2022 said he was no longer there.

Terraform Labs is behind the algorithmic stablecoin TerraUSD and coin Luna. These two coins briefly exploded in May 2022 and triggered heavy losses in the crypto market, which was already swayed by the tightening of monetary policy by central banks.

Digital assets have not recovered and regulators around the world are constantly looking for ways to avoid the various crimes in the crypto world. In South Korea, the previously vibrant market has now been crushed by the collapse in the price of the Terra (Luna) coin.

Terra’s collapse and the broader market rout led to the unraveling of Three Arrows Capital, the once-high-flying cryptocurrency hedge fund manager. Subsequently, Terra’s collapse spread to lenders and brokers such as Voyager Digital Ltd. and Celsius Network Ltd.

TerraUSD, also known as UST, is intended to maintain a constant value of US$1 in complex arrangements involving Luna. But the system relies heavily on trust in the ecosystem created by Kwon, a 31-year-old man studying computer science at Stanford. Once trust is lost, the regulatory system collapses.

“We are in the process of defending ourselves in various jurisdictions – we have held very high integrity, and look forward to clarifying the truth over the next few months,” Kwon previously said via Twitter.

The Terra community split after the collapse of TerraUSD. The original tokens were renamed to Terra Luna Classic and TerraClassic USD. Kwon, meanwhile, is starting a new Terra blockchain with new Luna as its sole token.

The new Luna token has been observed to increase by 26 percent in the last 24 hours, according to data from Coinmarket, although its founder is an international fugitive, this coin is a prima donna among crypto coin fans.

 

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