Do Kwon, the co-founder of Terra blockchain, is now wanted by Interpol

Blockchain co-founder Terra has caused investors to lose $40 billion this year following the collapse of his stablecoin.

Interpol has issued a red notice to locate the founder of South Korean cryptocurrency Terra, Do Kwon, accused of costing investors $40 billion following the crash of his stablecoin, the US attorney’s office said on Monday. a Seoul court.

The prosecution had asked Interpol to put him on the red notice list and asked the Foreign Ministry in Seoul to revoke his passport, saying Kwon was “at large.”

“Red Notices are for fugitives wanted for prosecution or to serve their sentence. A Red Notice is a request to law enforcement agencies around the world to locate and make the arrest, provisional detention of a person pending extradition, surrender or any other legal procedure”, specifies Interpol on its site.

“Interpol has issued a red notice against (Do) Kwon,” an official from the Seoul Southern District Prosecutor’s Office told AFP, without giving further details.

$40 billion

Do Kwon, co-founder of TerraUSD, lost $40 billion to investors and more than $500 billion to the cryptocurrency market this year following the crash of his stablecoin.

This collapse prompted a South Korean court to issue an arrest warrant for him in mid-September. The 31-year-old suspect had given the first interview of him in Singapore in August to the media after the May accident, in which he admitted wrongdoing. He has not been found since, as Singapore police denied rumors in mid-September that he was still in the city-state.

Mr. Kwon assured on Twitter that he was not on the run, without disclosing his location. In April 2022, Terra’s value had reached its highest level. According to CoinMarketCap, it was then the fourth largest stablecoin and the tenth leading cryptocurrency by market value. A month later, Terra lost more than half of its value in just 24 hours, causing a wave of panic in an already feverish crypto market.

Very quickly, the stablecoin and its sister token Luna plummeted to zero, causing losses of over $500 billion in the market and hitting the entire savings of many small investors in the process. Since then, South Korean authorities have opened several criminal investigations into the case.

Pauline Armandet with AFP

Leave a Comment

Your email address will not be published. Required fields are marked *