A South Korean court on Wednesday issued an arrest warrant for Do Kwon, the founder of the Terra blockchain, which collapsed in May. Meanwhile, Kwon responded to allegations that he was hiding from authorities. He clarified that he was not on the run, as alleged. Do Kwon said his team is cooperating fully with government agencies and he has nothing to hide. He added that his company is defending itself in multiple jurisdictions.
Do Kwon, I am not on the run !
Following the collapse of the crypto LUNA and the stablecoin UST that ruined thousands of investors, many people could not understand why Do Kwon was not being investigated or questioned by his country’s justice system.
So South Korean authorities are indeed investigating the debacle of the Terra (LUNA) project and its UST stablecoin that caused significant financial losses with many individuals and crypto companies that had invested in these crypto assets that are now worthless.
In addition to Do Kwon, five others are also wanted, including Nicholas Platias (a founding member of TerraForm Labs), for allegations including violations of the National Capital Markets Act, the U.S. Attorney’s Office said.
I’m not “on the run” or anything like that. For all the government agencies that have expressed interest in communicating, we are cooperating fully and have nothing to hide. We are defending ourselves in multiple jurisdictions – we have held ourselves to an extremely high bar of integrity, and we look forward to clarifying the truth in the coming months.”
It remains to be seen whether Do Kwon’s comments will propel LUNC back to last week’s levels.
In June, Terra founder and CEO Do Kwon already refuted recent claims that he cashed out $2.7 billion before the fiasco that led to the UST loss and LUNA’s fall to $0. Do Kwon stated:
This should be obvious, but the claim that I cashed out $2.7 billion of anything is categorically false.