Singapore Police reportedly said that “the wanted cryptocurrency creator Do Kwon was not currently in the city-state,” The location of the disputed Terra founder is still unknown as per the Bloomberg report.
However, Do Kwon, the creator of the collapsed TerraUSD and Luna currencies, clarified that he was not “on the run” after Singapore police indicated he had left the country. In an interview after the incident, Kwon claimed that he had no communication with the South Korean authorities.
Investors who suffered significant losses as a result of the ecosystem’s collapse have submitted multiple lawsuits against the creator of Terra in South Korea and the United States.
Therefore, earlier this week, a South Korean Court issued an arrest warrant for Kwon and several others. This announcement caused speculation of Terra tokens to halt momentarily. The Singapore Police pledged to support the South Korean police’s attempts to arrest the founder, who is currently under investigation.
Do Kwon Faces Criticism After Terra Luna Collapse
In May 2022, Do Kwon was charged with fraud by investors after the collapse because he had taken advantage of influential investors in order to help make his company Terra Network reach its peak. It pointed to a violation of capital market regulations that harmed investors by $40 billion.
Investors were unable to comprehend how the UST quickly plummeted, dropping by over 99%. They also couldn’t understand what happened when it took LUNA crashing down to zero. After all of this resulted in a whopping $40 billion loss. The fall in Terra currencies was severe and even mind-boggling.
The price of the dollar-pegged TerraUSD (UST), valued at $18 billion, began to fluctuate on May 7th and dropped to $35 cents on May 9th. Additionally, On May 12th, the LUNA currency fell from an initial price of $80 to just a few cents.
Now that a newer and better version of Terra has been released. Do Kwon is attempting to get back on track while dealing with several cases involving money laundering. The South Korean businessman remains hopeful about the prospects for the future of his firm and hasn’t given up yet.
Furthermore, the flash crash caused significant anger among investors. Do Kwon was instantly held responsible, and many people accused him of fraud. Staff from Terraform Labs had been put on a no-fly list. However, a Terraform Labs spokesperson stated, “We are not aware of the facts of the reported restriction.”