Key Takeaways
- Do Kwon says he is not hiding as crypto manhunt intensifies.
- The Terraform Labs CEO added that he had not noticed his name on Interpol's red-flag database.
From reputable coins facing severe losses to crypto stakeholders resigning and disappearing out of nowhere, the past few months have experienced a plethora of shocking incidents. One that stands out is the recent arrest warrant by a South Korean court for Do Kwon, the creator of the Terraform Labs cryptocurrency ecosystem.
Despite Interpol issuing a red notice against him and other officials also being on the lookout, the co-founder of defunct cryptocurrency operator Terraform Labs came out to defend himself and emphasise that he is not in hiding despite an intensifying global pursuit. On Monday, he said via Twitter that he wasn't making any attempts to hide. He also explained how he still goes on walks and to malls and implied that nothing has changed about his schedule.
Do Kwon says he is not hiding as crypto manhunt intensifies
All these statements on Twitter surfaced this past weekend after concerns regarding his location came up in light of a report from Singaporean officials asserting that he was not there. Reuters covered the story on Saturday.
The Terraform Labs CEO added that he had not noticed his name on Interpol's red-flag database.
He also expressed his intentions to cooperate with any government agency interested in communicating by stating that the company is in full collaboration and has no skeleton in its cupboards. He continued by saying that Terraform Labs had held itself to an incredibly high bar of honesty as it deals with cases in numerous jurisdictions.
According to South Korean authorities looking into the issue, Kwon travelled to Singapore at the end of April, where his now-defunct Terraform Labs project had a facility. However, there's no word on his current whereabouts after the city-state announced on September 17 that he had left. This led to an intense search for him by the prosecution.
Terraform Labs created the algorithmic stablecoin TerraUSD and its sibling token, Luna. In May, both tokens crashed, causing significant losses in the cryptocurrency markets and escalating legal oversight of digital assets.
On Tuesday, South Korean authorities chose not to disclose whether they had discovered Kwon's location. The Seoul Southern District Prosecutors' Office declared they are trying their best to locate him. They also expressed how difficult it can be to find and apprehend someone and how the circumstances change with time.
The fact that law enforcement agencies worldwide are working together to discover and detain Kwon suggests that his arrest and extradition to his home country may only be a matter of time. Prosecutors in South Korea have charged Kwon and five associates with financial fraud and breaking the country's capital market laws.
The prosecution has also asked Seoul's foreign ministry to revoke Kwon's South Korean passport after the defendant previously alerted police officers via his attorney that he didn't intend to show up for questioning.
Is Terra's Controversial CEO Deserving of Jail Time?
Terra's failure in May prompted a discussion in the crypto community around Kwon's potential arrest. The incident escalated to the point where a currency named "JailKwon" surfaced earlier this month. All these incidents boil down to the question of whether Terraform Labs' CEO is being jailed or not.
Numerous buyers were impacted by the collapse of terraUSD and luna cash, many of whom had been seduced by a plan that allowed customers to lend their terra for a 20% rate.
That's why many people in the crypto world have queried how Kwon has avoided being arrested so far. Still, opinions on whether he broke any laws in managing Terra are mixed. The U.S. Securities and Exchange Commission and Korean authorities are looking into Kwon and Terraform Labs at the moment, and there are also numerous class-action lawsuits pending against them.
It's striking to see how interested authorities are in talking to Kwon despite his claims that he is not hiding. Now, it is up to the authorities to decide if he should serve jail time. Even if Kwon is not charged with any crimes, his actions leading up to Terra's failure have made him somewhat of a villain in the crypto community.
What are your thoughts on this whole incident so far? Do you think Do Kwon should be jailed? Please share your opinions with us in the comments section.
