Red Notice Issued for Terra Luna Founder Do Kwon by Interpol

Red Notice Issued for Terra Luna Founder Do Kwon by Interpol

Altcoins News

Interpol has issued a red notice for Do Kwon, requesting law enforcement agencies worldwide to locate and arrest the Terraform Labs founder whose blockchain startup collapsed earlier this year and wiped out investors’ $40 billion. Kwon faces charges in South Korea for the wipeout of investors’ money, the prosecutors said.

The notice against Kwon — which a spokesperson for the South Korean prosecutors confirmed to TechCrunch — may set a wrong precedent for the crypto industry and hurt innovation, especially if Kwon didn’t knowingly defraud investors and customers, several industry executives have said in recent weeks.

“Having met Do Kwon … leaving how he is a person aside … I think the criminalization of Terra is a dangerous precedent,” said Haseeb Qureshi, Managing Partner of crypto investment fund Dragonfly, on a recent podcast. Qureshi, however, cautioned that he, like many others, doesn’t know all the details.

Also Read: Here is Why #BoycottBinance is Trending on Twitter

South Korean prosecutors have doubled down on their probe into Kwon in recent weeks, accusing earlier this month that the entrepreneur was “not cooperating,” and was “obviously on the run,” a day after Kwon indicated otherwise. They requested Interpol, the global police organization, to issue a red notice for Kwon earlier this month.

Terraform Labs’ so-called stablecoin UST and cryptocurrency LUNA dramatically imploded in May after investors lost faith in the efficacy of its fundamentals. Kwon, with approval from the Terraform community, revived the crypto project but has avoided the so-called algorithmic stablecoin component for now. The de-pegging of TerraUSD (UST), the firm’s previous stablecoin, prompted the crash of the LUNA tokens as they were intertwined.

The crash of the LUNA token also contributed to the wipeout of Three Arrows Capital, once a high-profile crypto hedge fund. The demise of the fund severely impacted a number of crypto lenders including BlockFi from whom it had borrowed billions of dollars.

Leave a Reply

Your email address will not be published. Required fields are marked *