Do Kwon, a co-founder of Terraform Labs, received a red warning from Interpol, raising concerns about the potential consequences for him and the cryptocurrency industry.
However, the international cat-and-mouse chase between Do Kwon and South Korean authorities became a priority for law enforcement officials. Ultimately, over 190 countries were looking for him to take him into custody.
On September 19th, The Seoul Southern District Prosecutors announced that they had begun the process of including Kwon to an international police organization’s most-wanted list, which will escalate their search for the central figure behind Terra’s failed blockchain.
Prosecutors in South Korea claimed that Kwon is obviously on the run and isn’t cooperating with them during their investigation. However, Kwon claims he is not on the run, but his whereabouts are unknown after Singapore authorities say he’s no longer living in the country.
Kwon has not yet issued any statement – however, in his prior tweets, he insisted that Terraform Labs was defending itself against multiple lawsuits.
Kwon clarified on Twitter, said:
“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.”
Terra Spends Over $1 Billion to Save UST.
Terra’s Luna Foundation Guard said that the firm had spent over $1 billion USD worth of Bitcoin on its attempts to save TerraUSD (UST), leaving the company with around USD 80 million worth in Bitcoin and other digital assets.
Kwon and Terraform Labs’ current token holdings are unclear partly due to the lack of transparency surrounding their operations. However, the original Terra and Terra 2.0 blockchains are worth around $2.2 billion based on CoinGecko’s estimation data.
Terraform Labs was responsible for the sudden break of TerraUSD, an algorithmic stablecoin, and its sister token Luna when they crashed in May. This drop started causing losses across other cryptocurrencies that were already having a hard time due to tightened monetary policies set out by international governments.
TerraUSD, also known as UST, was meant to be constantly valued at $1 in a complicated arrangement involving Luna. However, this system relied on the belief in an ecosystem constructed by Kwon, who studied computer science at Stanford University. When there wasn’t any trust left – the entire scheme collapsed.
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