Terra USD Stablecoin Founder Do Kwon Wanted by Interpol

Korean Do Kwon is now sought after all over the world. The collapse of this digital asset that is supposedly pegged to the dollar has left many investors on the ground.

Following the arrest warrant issued by South Korea, Do Kwon, the founder of the stablecoin Terra USD, is now the subject of an Interpol red notice, at the request of South Korean prosecutors, according to the Bloomberg agency. The Korean courts accuse the crypto entrepreneur of having violated the “national capital markets law”.

However, on Twitter, Do Kwon had indicated on September 17 that he was not “at large” and that he was collaborating with the authorities.

Last spring, the collapse of Terra USD, this digital asset that was supposed to remain pegged to the price of one US dollar, had added to the panic in the markets crypto assets already very feverish. Widely used in the new world of decentralized finance, the sudden fall of this crypto asset had resulted in companies living off its sale and severe losses estimated at 40 billion dollars for investors around the world.

This algorithmic stablecoin (a complex mechanism that plays arbitrage between supply and demand) had been imagined by Do Kwon, a 31-year-old South Korean at the origin of the Terra blockchain and its Terra USD and Luna tokens.

After repeatedly promising and attempting bailouts for the stablecoin, Do Kwon finally dropped off the radar. The last known location is Singapore, from where he gave an interview in August. But the police of this city-state. He claimed that he was no longer there.

This Interpol Red Notice will allow law enforcement agencies in South Korea to enlist the help of their counterparts around the world in locating and arresting you for extradition. The Korean Foreign Ministry has already revoked his passport. Several criminal investigations have been opened around this case.

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