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The South Korean Government asks Interpol to Issue a Red Notice for Terra Crypto Founder

The South Korean Government asks Interpol to issue a Red Notice for Terra Crypto Founder

Interpol was requested to issue a red notice against the co-founder of Terraform Labs after South Korean prosecutors denied Do Kwon’s claim that he was on the run. Having lost his cryptocurrency startup Terra Lab for $40 billion in May, this has escalated the public drama.

The Seoul Southern District Prosecutor’s Office said Kwon had not cooperated with the investigation and had informed them (via his lawyer) that he would not appear for questioning. Based on “circumstantial evidence” that Kwon is fleeing, Korea’s foreign ministry has been asked to revoke Kwon’s passport.

If Interpol issues a red notice, which alerts law enforcement worldwide, visas may not be issued, cross-border travel may be restricted, and authorities can detain a person “provisionally” while they await extradition, surrender, or other legal action.

In May, investors lost trust in Terraform Labs’ UST stablecoin and cryptocurrency LUNA. As a result, Binance and Coinbase delisted the token in addition to discontinuing support for its trading pairs.

This time, Kwon has refrained from launching an alleged algorithmic stablecoin with the Terraform community’s support. The de-pegging of TerraUSD (UST), Terra’s former stablecoin, and the fall of LUNA are interdependent.

In the aftermath of the meltdown of the LUNA coin, Three Arrows Capital, a prominent cryptocurrency hedge fund, was utterly destroyed. The bankruptcy of the fund also had a significant negative impact on many cryptocurrency lenders.

In response to Kwon’s arrest notice, many investors liquidated their Luna cryptocurrency holdings last week. Kwon’s tweet posted over the weekend stated, “We are in the process of defending ourselves across many jurisdictions and look forward to establishing the truth in the near future.”

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