The International Criminal Police Organization or Interpol has slapped defunct Terraform Labs founder Do Kwon with a red notice.
Arrest Warrant Out For Do Kwon
The Terra Saga continues with the co-founder Do Kwon’s misfortune. After being investigated by numerous law enforcement agencies and having charges filed against him, Do Kwon has become an internationally wanted man. Interpol has slapped him with a red notice, signaling global law enforcement agencies to track him down and arrest him on fraud charges.
Do Kwon’s troubles began with the collapse of the LUNA crypto and the depegging of the Terra stablecoin. The crash took down many other crypto companies in its wake, like the high-profile crypto hedge fund Three Arrows Capital, and wiped out $40 billion worth of investor funds.
Is Do Kwon Absconding?
South Korean law enforcement had already launched investigations into the Terraform founder and doubled down over the last few weeks. An arrest warrant has already been issued in his name. Earlier this month, the South Korean prosecutors appealed to Interpol to issue a red notice. They have claimed that Kwon has not been cooperative with the investigation and they are looking to revoke his passport as he has been absconding. It was thought that Kwon was in Singapore, where he maintains a residence, but police have confirmed that he’s not there. Do Kwon, however, has dismissed such claims and has stated that he is not on the run from officials.
He stated,
“For any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide. 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.”
Dangerous Precedent
Several industry experts have criticized the arrest warrant on Do Kwon’s name. They believe that it could set a wrong precedent in the industry, as it might deter innovators from launching their projects for fear of failure. Especially since Kwon has never admitted to knowingly defrauding investors and customers, the warrant on his name could be interpreted as regulatory persecution. Since the crash, Kwon has revived the project after support from a community-wide vote. However, he has been avoiding the algorithmic stablecoin component of the project for now, as that was at the core of the TerraUSD depegging that resulted in the LUNA crash.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
