Co-founder of Terraform Labs, Do Kwon is on the verge of becoming an international fugitive. This follows after prosecutors filed with the Interpol to place him on red alert, per report from local media Yonhap.
Kwon and Terra have been under fire lately. This follows after the firm’s native LUNA token lost nearly 100% of its value within a few days. The incident saw the UST stablecoin de-pegging, while it also threw the entire crypto market into an unprecedented downturn.
Since the incident, however, there have been several theories regarding how Do Kwon and his team pulled off one of the biggest scams in the history of crypto. While some believe he is currently on the run, prosecutors also said at he is not ready to cooperate with the authorities in the ongoing investigations. Although, he has denied those allegations severally, claiming he is just protecting himself.
Why Korean Officials Are Seeking to Place Do Kwon on ‘Red Alert’
Korean officials immediately swung into action as they tried to uncover what led to the $40 billion Terra crash. However, it appears they haven’t had much help from Do Kwon and his team. According to the prosecutor’s office, it is in fact, Kwon’s lack of cooperation that led them to first place him on a travel ban, before trying to place him on Interpol’s red alert list as well.
Should the red alert be issued by Interpol, it means that Do Kwon will be arrested on sight, and detained by any law enforcement agency worldwide pending his extradition.
Do Kwon has been invited by the prosecution severally. However, he failed to acknowledge any of the invites despite receiving them. In fact, in a statement released through his lawyer, Kwon said he did not want to respond to the summons. But all of these happened before he left for Singapore in April.
To make the conspiracy theory even more interesting, reports also have it that other top executives at Terra also fled the country around the same time Kwon left.
As recent reports suggest, prosecutors are currently intensifying their efforts to locate and arrest Kwon. However, he maintains that he has done no wrong and only travelled for security reasons.