• South Korean authorities and Interpol are investigating Do Kwon under high pressure
• Do Kwon denies escaping – but cannot be found
• Meanwhile, Terra USD and LUNA continue to trade
Do Kwon has not been sighted for almost five months now. Since the Terra crash, which burned assets totaling more than $40 billion, the South Korean crypto founder has only been heard on Twitter. Law enforcement agencies, on the other hand, are intensifying their search for Do Kwon.
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South Korean and US authorities target Do Kwon
South Korean authorities began investigating Do Kwon immediately after the Terra crash. A Seoul court issued an arrest warrant for Do Kwon for violating South Korean capital markets laws on multiple counts. On Sept. 15, they confiscated 3,313 bitcoins worth approximately $64 million from Do Kwon’s funds said to have been transferred to crypto exchanges OKX and KuCoin. The US Securities and Exchange Commission has also been investigating Do Kwon for months, and the South Korean failed to comply with a summons.
Interpol issues “Red Notice” against Do Kwon
The search for the Terra founder then reached a new dimension a few weeks ago: The international criminal police organization Interpol, a network of police authorities from 195 member states, issued an international arrest warrant – a so-called “Red Notice” – against Do Kwon and five others in September former employees of the blockchain platform Terraform Labs. They are accused of violating applicable securities law. However, there is no extradition treaty between Singapore (where Do Kwon says he is still staying) and South Korea. In addition, Interpol’s “Red Alert” is not binding on police authorities, as CoinTelegraph points out.
Do Kwon denies escaping
The paradox of the situation: Do Kwon cannot be found despite an energetic search, but at the same time he vehemently denies via Twitter that he is on the run. He goes about his everyday life quite normally, walking uncovered on the streets and in shopping malls. He also continues to write programming codes in his living room. “I make no effort to hide,” Do Kwon said last week to his more than one million followers on the short message service. Furthermore, Do Kwon denies the Interpol manhunt, especially since he is not on Interpol’s “red list”. However, not all alleged criminals who receive a “Red Notice” are noted there. In addition, according to the 31-year-old, he has no worries about an alleged punishment. “We are in the process of defending ourselves in multiple jurisdictions. Up until now we have maintained an extremely high level of integrity and look forward to uncovering the truth over the coming months,” Do Kwon tweeted.
Yeah as I said im making zero effort to hide
I go on walks and malls, no way none of CT hasnt run into me the past couple weeks
– Do Kwon ? (@stablekwon) September 26, 2022
According to media reports, Do Kwon is no longer in Singapore
However, it is not known where exactly Do Kwon pursues this supposedly normal everyday life. Although Do Kwon states Singapore as his whereabouts, according to a “Reuters” report, he left the Southeast Asian financial metropolis on September 17th. In response, the South Korean law enforcement authorities and Interpol intensified their manhunt – but so far without success. The fact that Do Kwon is being targeted by Interpol should bring some satisfaction to some of the thousands of retail investors who lost their savings in the wake of the Terra debacle. Meanwhile, Do Kwon’s prosecution is not appealing to all crypto enthusiasts, with some fearing setting a negative precedent that will stifle future innovation. For example, Haseeb Qureshi, managing partner of crypto mutual fund Dragonfly, reflected on a recent podcast, “After meeting Do Kwon […] apart from his person […] I think the criminalization of Terra is a dangerous precedent,” he is quoted as saying by t3n. But Qureshi admitted that he doesn’t know many details, which makes an assessment difficult.
Luna/Terra Coins rebound at low levels
Meanwhile, two Terra Project coins continue to trade. The successor coin to Terra, Terra LUNA Coins (LUNA 2.0), is now trading at $2.4739 (as of October 6, 2022), higher than the previous low at the end of August (just under $1.60). This token was launched in mid-May. Linked to this is the hope that the Terra project can create a fresh start.
The Terra Classic Coin, which was affected by the crash, is also still being traded. This currently only costs 0.0002908 US dollars. According to “CoinMarketCap”, this still corresponds to a market capitalization of almost two billion US dollars, but this is only a fraction of what the Terra Coin was worth before the sale. For comparison: The Terra Classic Coin temporarily cost over 100 US dollars in March 2022. Whether the Terra ecosystem will experience a renaissance and regain its former strength is extremely doubtful in view of the recent turbulence surrounding the project and especially its founder Do Kwon.
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