Interpol Releases Red Notice for Terraform Labs Co-Founder Do Kwon

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Interpol is now involved in the search for Terraform Labs Do Kwon.

The International Criminal Police Organization (Interpol), an international organization that aids worldwide police cooperation and crime control, has issued a “Red Notice” for Terraform Labs co-founder Do Kwon.

According to the news report shared by Bloomberg, the co-founder is wanted under the charges related to Terra’s collapse.

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Red Notice is a request for law enforcement worldwide to locate and arrest a person wanted in any of 195 partnering countries.

It is worth noting that a dispute between Do Kwon and South Korean authorities has been going on for quite some time.

On September 14th, South Korean authorities issued an arrest warrant for Do Kwon and five other associates for allegedly violating the country’s capital markets law. The authorities believed that these individuals were hiding in Singapore.

As a response to the allegations, Do Kwon tweeted:

We are in the process of defending ourselves in multiple jurisdictions — we have held ourselves to an extremely high bar of integrity and look forward to clarifying the truth over the next few months.

Following the arrest order, Do Kwon used Twitter to state that he was “not on the run.” However, authorities later discovered that Terraform Labs’ co-founder is no longer in Singapore.

On September 19th, the news broke that the Seoul Southern District prosecutors’ office aims to receive help from Interpol by placing Kwon on the Red Notice list.

Back in May, the whole Terra ecosystem experienced a crash after its algorithmic stablecoin TerraUSD (UST), now known as Terra USD Classic (USTC), lost its United States dollar peg and hit a price of $0,006.

A similar situation occurred to another Terraform Labs asset LUNA, now LUNA Classic (LUNC). In May, the price of the coin fell to $0.0000009 when in June, it reached its all-time high of $119.

The crash of Terra (LUNA) had a significant impact on other companies and created a chain reaction in such companies as the high-profile crypto hedge fund Three Arrow Capital (3AC). The fall of the hedge fund has impacted various crypto lenders, who borrowed millions of dollars from 3AC.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree


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