Terra co-founder Do Kwon might be hiding in Europe, according to South Korean prosecutors.
Prosecutors have gathered sufficient evidence to suggest that the company behind the failed blockchain was involved in market manipulation. They obtained text messages that were exchanged between Kwon and his staff at Terraform Labs.
In fact, a Prosecutor's Office official said that Kwon was in charge of price manipulation. However, the entrepreneur’s representative has denied those allegations.
Kwon’s passport has been revoked by South Korea’s Ministry of Foreign Affairs as of this Friday.
At the same time, Kwon continues to deny being in hiding in a recent tweet. In fact, he says that he will throw a meetup in order to disprove mounting allegations, but this appears to be just another attempt at gaslighting.
Alex DovbnyaSouth Korean authorities insist that Kwon is “obviously on the run.”
In mid-September, Kwon was slapped with an arrest warrant. Shortly after that, Interpol reportedly issued a red notice (an international arrest request known).
In turn, Terraform Labs accused South Korean prosecutors of overextending their authority. Kwon himself implied that the case could be politically motivated. The company claims that Luna, the failed cryptocurrency backed by Terraform Labs, is not covered by the country's securities laws since it is not a security.
Terra, which was one of the biggest projects in crypto, imploded in May, leaving many investors in the dust.
Denys Serhiichuk
U.Today Editorial Team
Vladislav Sopov
Dan Burgin