International policing organisation Interpol has issued a Red Notice for the boss of crypto firm Terraform Labs Do Kwon, triggering a worldwide search for his whereabouts after prosecutors in South Korea said he had failed to cooperate with their investigation.
Do Kwon has hit back at reports he is on the run from police, saying in a tweet last week: “I am not “on the run” or anything similar - for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide.”
Founded in 2018 by Kwon, Terraform Labs created the Terra USD stablecoin and Luna token, both of which collapsed in May 2022, wiping their $45 billion market cap in a matter of hours.
The collapse sent shockwaves around the crypto world, with hedge fund Three Arrows Capital (3AC) later filing for bankruptcy, revealing the extent of its exposure to Terra. The fund’s demise then destabilised multiple other crypto companies with whom 3AC had close financial ties. in June, 3AC defaulted on a $675 million loan from New York-based cryptocurrency broker Voyager Digital. Voyager later filed for bankruptcy after suspending customer trading, deposits and withdrawals.
South Korea’s special financial crimes unit began an investigation into Terra after a group of five investors filed criminal complaints accusing Kwon of defrauding them.
A Red Notice is issued by Interpol to request law enforcement agencies worldwide to hunt for a fugitive wanted either for prosecution or to serve a sentence. There are currently some 7,152 active Red Notices in circulation.
